From MSN Money- National Averages(APR): Low – 5.56% Average – 6.24% High – 7.17%
We all hear and read everyday that the real estate market is in for a foreclosure storm. I think that storm is brewing as I type. If you are one of the many Californians that has a huge mortgage in danger of default and your home’s value is sliding, then you might consider a short-sale before it’s too late. A short-sale is acheived when your lender agrees to accept a short-pay of your mortgage when your home is sold. Yes, it might affect your credit but not as badly as foreclosure.
You’ll need to work with a knowledgable real estate agent to list your home and assist you in conducting the short-sale paperwork with your lender. Be prepared to disclose everything that could affect the approval of your short-pay.
- How delinquent your payments have become and whether or not you are in foreclosure
- How delinquent are your property taxes
- Do you have an impound account for your taxes and insurance
- Might there be any liens and judgements that may attach to the property, including child support, creditor judgements, lawsuits, IRS and FTB liens
- Any possible additional ownership to the property (unrecorded deeds or possible spousal interest)
- Are you in bankruptcy or do you plan to file in the immediate future
Seek tax and legal advice before you begin, but don’t wait too long as the clock might already be ticking.