This is somewhat a continuation of yesterday’s post on refinancing yourself out of your equity. If you are in danger of foreclosure, getting your financial institution to approve a short sale may be your only way out of several years of bad credit, bankruptcy, etc.
A short sale is when the mortgage company takes less than what is currently owed on the home. With the whole subprime loan explosion, several homes were bought with 100% financing, adjustable loans, and negative amortization loans. People believed that these loans would be a good way to get them into the property, and then they could refinance in a year or two once they had enough equity to get into a good, fixed loan. Surprise, surprise. In a lot of places in the Bay Area, prices have softened and even dropped. Rates on the adjustable loans have now skyrocketed. Homeowners who got into the property with these loans can no longer afford their mortgage payment, cannot refinance due to no equity, and cannot sell for the amount owed on the property or higher. Instead of facing foreclosure, think about short selling the property. You won’t get anything out of it, but it’s better than foreclosure.
Melissa Casciato
(415) 490-7998
www.buysellSFhomes.com
melissa@buysellSFhomes.com
Filed under: Real Estate Tagged: | foreclosure, San Francisco real estate, short sale
hi, my situation right now is hard. i have not paid my mortgage for the last 3 months what would you consider better a foreclosure or short sale?
Hi,
Definitely a short sale is better than foreclosure. Feel free to contact me at melissa@buysellsfhomes.com