Facing Foreclosure? Is a Recent Job Loss Causing Financial Distress?

Business Articles | August 20, 2009

A short sale refers to a property sale in which the sales price is lower than what is owed currently to the lender. Lenders often agree to this financial solution when the borrower is struggling to make the ongoing mortgage payment when this is a stronger financial option than allowing the property to go into foreclosure.

Millions of people have lost their job opportunities, or have experienced a reduction in their annual incomes over the past few months. While many individuals have relied on second incomes or savings over the short term, others have been unable to maintain their financial threshold and are facing foreclosure on their properties in the event that something does not change quickly. If you are currently in this situation, you do have options available for consideration.

Some of your options include searching for additional employment, trying to negotiate a change in your current mortgage with your lender, listing your property for sale and short selling. If you are unable to secure additional income or your lender will not modify your loan in such a way that you can afford to make ongoing mortgage payments, short selling your home may be the best financial option.

What is Short Selling?

A short sale refers to a real estate transaction in which the property sells for a price below what is currently owed to the lender. Many people are unfamiliar with this financial option, as it often does not seem like common sense for a lender to allow a property to sell below what is currently owed. But, during a downturned economy, many lenders would prefer a short sale to a foreclosure. When a property goes into foreclosure, the lender must maintain the property, covering the mortgage note and maintenance costs and other carrying costs until the property sells. So, in the event that it makes better financial sense to facilitate a short sale, the lender will often agree to this with the current borrower.

If you are in a distressed financial situation with your property, a short sale may be a viable option for you to consider. To find out more about this option, order your FREE Short Sale Report and Markey Value Analysis by visiting http://relieftohomeowners.com.

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ABOUT THE AUTHOR

Antoine Grier is co owner of ASG Investments, a successful real estate investing company in Maryland. Antoine invests in the residential properties located in Maryland, Washington DC and Northern Virginia. Antoine's company provides full service investing from wholesale deals, short sale negotiations for homeowners, light and major rehabs, and creative deal structures. Antoine is also a published author and local short sale expert.