Many homeowners who have lost value in their home are looking for ways to rid themselves of their underwater mortgage. In months past some homeowners were so frustrated they simply walked away from their mortgage, but this is not an option that every homeowner is willing to take as it practically destroys your credit score. Short sales are an option that many homeowners have sought to use in the hopes that a lender will allow them to sell their home and avoid foreclosure.
While there have been homeowners who have been able to short sell their home and simply move on from a bad situation, there are homeowners who are having trouble with the second lien on their home, which is making it difficult for them to short sale. However, there have been incentive programs implemented that will benefit both the primary and secondary mortgage lender if they will agree to short sale.
Many homeowners are going to have to work closely with their lender in order to get this done, as some second lien mortgage holders will not work with the primary mortgage holder or they may be unwilling to allow the homeowner to short sell because they stand to make a smaller profit. However, the bright side of this is that many lenders are realizing that short sales, or anything that allows them to avoid foreclosure, is usually more beneficial. Even if the lender helps a homeowner sell their home at a loss for the homeowner, the bank can still make money through incentive programs and by reselling the house.
Short selling is not something that’s going to be easy for any underwater homeowner, but anyone with an underwater mortgage who is having trouble making their payments or simply wants out of their mortgage in a situation where they have seen a drastic loss in the value of their home, are being advised to contact their lender about working with them in short selling. While it may not be an easy road to travel it is definitely going to be advantageous for a homeowner to take this route rather than walk away from a mortgage or face foreclosure.