Philadelphia, PA (PRWEB) September 24, 2008
For a homeowner who is behind on mortgage payments and facing foreclosure, a real estate short sale can provide much needed relief. The state of the current real estate market has left many with little or no equity. The website http://www.shortsaleway.com provides information and resources needed to learn how to discount a mortgage loan making an otherwise impossible home sale possible.
When housing prices decline a homeowner who has recently purchased a home can be left with little or even negative equity. Many will just ride out the market until prices increase, but for others who must sell now it can create a perfect storm of financial disaster. If a homeowner gets behind on payments and must sell, a short sale will provide a great alternative to foreclosure.
A short sale is when a real estate professional (agent, broker or investor) or a homeowner negotiates with a mortgage company to accept less money than what is currently owed. Typically the homeowner should be behind on payments before attempting a short payoff sale but the process can be done when a valid financial hardship is proven. An example of a valid financial hardship is job loss, illness, divorce, death or other extenuating circumstance. At http://www.shortsaleway.com/short-sale-negotiating-service.html you will find a service that can handle the process for you.
Many mortgage companies are eager to get an offer and are loosening their requirements for accepting a mortgage short. The current market conditions have some banks on the defensive hoping to minimize losses while the market is down. Foreclosure is extremely expensive for a bank and taking a loss now can many times be to their advantage. Attorneys, purchase costs, sales costs, and administration can add up to much more than the potential short payoff sale loss.
It wasn't always as easy as it is now to walk away from a mortgage and have thousands in debt forgiven. Many banks were and still are issuing 1099's to homeowners for the forgiven debt, expecting them to pay the federal government their income tax bracket's worth of tax. Laws have now been passed that exempt many owner occupant homeowners from paying tax on the forgiven debt, which has been a blessing for those who have avoided foreclosure via a short sale.
For homeowners that are interested in refinancing and staying in their home, a loan modification service can be found at http://www.shortsaleway.com/loan-modification.html. Modifying a home loan, also called a workout plan, creates a win-win situation for the bank and homeowner.
Until recently, many homeowners were also expected to pay back any forgiven debt to their mortgage company. These judgments or deficiency lien attempts by the mortgage company to recoup losses have been abandoned by most. Homeowners were not agreeing to sign for the debt and opting for a foreclosure, where all the debt will be forgiven. This led to most banks accepting the modern short sale and opting to take a small loss with little headache.
Owner of http://www.shortsaleway.com and short sale expert Jonathan Christopher explains, "Banks have become more understanding and are making the process a whole lot easier for anyone trying to short a loan." This may come as a result of the current state of the economy and the direct correlation between the housing and stock markets.
Learning how to short a mortgage loan is opening up a large niche for Real Estate Agents and Investors. Foreclosures are at an all time high and the need for professionals with an understanding of creative ways to prevent foreclosure is high. Anyone interested in learning this technique can find all the information they need and an instruction guide at http://www.shortsaleway.com/short-sale-ebook.html.
# # #