Many homeowners are suffering from financial troubles and as a result they are having problems when it comes to their monthly mortgage payment. As a result, months ago the Obama administration began the Home Affordable Modification Program, which was set in place to help homeowners through a variety of plans that would make their mortgage more affordable.
However, with underwater mortgages becoming such a problem there are very few options available to help homeowners in this position as many lenders don’t like the idea of principal reductions or where a home has lost so much value, many homeowners simply want to get out.
While it’s understandable that a homeowner who owes a substantial amount more on their mortgage than their home is worth would want to be rid of that bad situation, it seems that rather than walking away from their home all together and ruining their credit, many homeowners are looking to short sale.
Some lenders are willing to work with a homeowner when it comes to selling their home at a loss and many homeowners are willing to take this route as they see their home being in a position where it will not regain value anytime in the near future.
There is an incentive, according to reports, where if a lender allows a homeowner to sell their home at a loss they will get a $3000 moving incentive to help with the costs of relocating. While short selling does have troubles as well, since many homeowners have to deal with primary and secondary lenders, anyone who is looking to short sell their home may want to contact the lender about this incentive if they short sale.
This may not be offered from every lender but homeowners that want to short sell should at least look into this moving incentive, as well as, an agreement where if they short sell they will be forgiven the remaining mortgage principal on their home. If a homeowner short sales and still owes money to the bank it does little good seeing as how they will be paying money on a home in which they no longer live.