If life gives you a hundred reasons to cry, show life
that you have a thousand reasons to smile. Moving away from the place you
called home for so long can be a sad experience. Your financial situation
deteriorated and you are forced to take corrective action. This can be a
positive experience by demonstrating the right attitude. By making decisions in
the right direction, you can become stress free. If your mortgage payment
became a burden and you can no longer keep up with the increase of living
costs, get professional help, guidance and assistance from your real estate
agent.
Definition (Thesaurus) of Foreclosure: to deprive
(a mortgagor) of the right to redeem mortgaged property, as when payments have
not been made and to bar an equity or a right to redeem (a mortgage).
Definition
(Thesaurus) of a Short Sale: occurs when
a property is sold and the lender agrees to accept a discounted payoff, meaning
the lender will release the lien that is secured to the property upon receipt
of less money than is actually owed.
In
the process of foreclosure the bank now owns the property. This is usually
caused by default on mortgage payments and ends up in a forced sale at a public
auction. With short sales,
the bank does not own the property, as is the case with foreclosures. However,
the bank does need to approve the sale since the bank, and not the seller,
incurs a loss on the property (which is usually sold below market value).
According to a cover story
in the Washington Times some time ago Zillow reported that more than one-fifth
of Americans owe more on their mortgage than their home is worth. For
homeowners who can not pay their monthly debts, being underwater is unpleasant
and worrisome. Contact your lender as soon as you recognize you will have a
problem paying your mortgage and continue to pay your mortgage as long as you
can; even partial payments are better than no payment at all. Get in touch with
your Realtor who can do an accurate market analysis and price your home
according to its true market value. A short sale can be a better solution
because the long-term consequences are less painful than a foreclosure