Short Sale Alternative

Short Sale Alternative

Do you know the Short Sale Alternative?

The Government is providing lenders with a lifeline to help homeowners stay in their
homes in the Toledo area by offering an incentive program.  The agencies involved are working to repair their prior image of not working with troubled mortgages and simply forcing homeowners to walk away.


That was then and this is now; things have changed.  You may not realize it, but lenders are now working with more homeowners to find betters solutions and are offering refinancing and modifications to more homeowners who have found themselves in difficult situations.

Resource: Short Sale Facts - Worth the Time

Check out Making Homes Affordable on the Official Goverment page that is updated regularly.

Do you qualify for Refinancing

Do you qualify for modification?


Other Resource Links to Answer your questions if you don't think you qualify.  Click Here

Finance Information- the meanings of different loan terms, find help with your Toledo, Sylvania, Maumee, Perrysburg Home Loan.

Consider Short Sale Help

There are many new financing programs in place. Your lender may or may not be participating in them, but knowing they will show to how accomplish a short sale is a start. First contact your lender to see if you have a FHA backed mortgage (Freddie Mac or Fannie Mae)  because these loans are easily refinanced into more affordable payment plans.  Even if your home is under water, as long as your income can support the new payment plan they go as far as to write off your mortgage loss and lower your interest which lowers your payment greatly. Many factors need to be considered, and remember that a Short Sale may not be the best choice for you.

If you don't have one of these government backed loans, don't give up.  Call your lender because many banks are participating in the new program to help owners get a payment plan adjustment for five years, lowering your interest and making adjustments to help homeowners with their mortgage payments.  See Hud for a great resource of information to Short Sale Help. 

See a detailed explanation of the Government Programs in place to help homeowners refinance.  You will still have to work with your lender; but they can provide these New Housing Programs if they are participating.  If they are not, go to HUD; they can direct you to a bank that will work with you. 

You should be well informed before contacting your lender, even if short sale alternatives won't help.  Knowing your situation, figures, and the options that will work for you will show the lender that you are taking the matter seriously. 

For lenders to be able to verify your information, they're going to need to look at your financial records. It is also important to remember that you should include records for each person who will be an owner of the house. So before you even visit the bank, make sure you'll be able to provide copies of these important documents:

  • Paycheck Stubs
    Remember that lenders are most interested in your average income. Not only will they want to see this month's paycheck, but also how much you've been making for the past two years. Steady employment is also more attractive to lenders, so if you've been hopping from job to job, be prepared to discuss the reasons why.

     
  • Bank Statements
    Most lenders will also ask you for copies of your bank statements.

     
  • Tax Records
    It's always a good idea to save copies of your tax returns, especially if you're self-employed. If you own your own business, it's important to note that lenders generally consider your income as the amount you paid taxes on--not the gross income of the business.

     
  • Dividends and Investments
    Lenders will usually consider long-term investment dividends, as well as your investment portfolio, when evaluating your income.

     
  • Alimony/Child Support
    If you receive steady payments as part of a divorce settlement or for child support, you can also include this as part of your gross income. Just remember that lenders will want to see a copy of your divorce/court settlement verifying the amount of the payments.

     
  • Credit Report
    Virtually every lender will want to see a copy of your credit report as part of the loan application process. The report lists all of your long-term debts, as well as your payment history. In general, they will require you to pay for the credit report (approximately $50), but if you have a recent copy, they may accept that instead.


    General Utilities
    Car Payments
    Student Loans
    Medical Bills


    You will need to have a Hardship Letter Prepared Also.  Mortgage Mitigator will be handling this and want to know this information in three paragraphs: Name on Loan, Loan #, Contact Information; why you need adjustments made on your loan; what caused this and what are you doing now that will make it possible to pay payments on time with this modification, what plan would work for you.  Please understand that if your income won't be enough to make the payments even after the refinance, you will be denied.  The decision will be made based upon your DTI ratio.
  •  
  • Get a Free Market Value of your Home by Victoria Luhring of Danberry.

    Lenders in this Program are given incentives from the government and they may require you to attend a money management counseling class.  They should be prepared to provide you with this information.  There are also incentives to your balance from the government of $1,000 a year, every year you make timely payments for a limited time.
     

    If these Short Sale Alternatives aren't for you.

I would be happy to help you with a short sale, if the above options don't work out for your situation. 

 Get a Hardship Letter Prepared for the Lender:

If you considering a modification on your loan or short sale, you should get a hardship letter prepared.

Hardship Letters need to be to the point, truthful while convincing a lender to stop foreclosure or accept the plan you're presenting.  Don't threaten, complain or blame, just present a possible solution.  Show legitimate reason for falling behind.


Step 1: Todays Date

Step 2: Title Hardship Letter for __________ example: Short Sale, Loan Modification, Repayment Plan

Step 3: Property Address        
Property Account # & Lenders Name
        Borrowers Name on Account
        Date Purchased
        Loan Balance
        Professional Appraisal Value
(For short sale only & isn't required but shows your determined & taking that extra step that most don't bother.  A Real Estate Expert can give you the ball park figure)

Step 4:  State the Work Out Plan you are seeking.  Example Short sale, modification on loan, repayment.

Step 5:  Explain financial hardship example: Job Loss, Illness, Family death, divorce, health insurance,  Adjustable mortgage, business failure, unexpected expenses.

Step 6: Explain why this caused you to fall behind & why you can't comply to the original terms. If you feel you will be able to later, you may want to have a modification on terms till your situation improves.  

Step 7: Explain a plan of payments to get back on track.  This plan must be possible based on your income.  If short sale is your goal than you should know what to expect from you home sale.  I can help you with a Short Sale.

Step 8: Thank them
       List contact information
       Signatures of anyone listed on this loan

Remember you must present a possible plan that you can live with.  Do a rough draft until it's as short and to the point as possible. If you are having trouble, please get professional counseling to help.

Can you still sell your home if you have a tax lien on the Property?  What to do now!  This is a serous matter and you may need advice from an attorney plus an Experienced Top Agent from the Danberry Company. 

 

Contact Information

Photo of Victoria's Luxury Home Team Real Estate
Victoria's Luxury Home Team
The Danberry Co. Realtors
3555 Briarfield
Maumee OH 43537
Cell : 419-460-5587

    

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