| What happens if you have no equity in your home?
|
If you’ve missed a few payments, and recently received an NED, or Notice of
Election and Demand, you may be looking for alternatives to foreclosure. But if
your mortgage balance is more than the value of your property, and you are not able
to make payments, you may have a few options apart from foreclosure.
So is a short sale the solution? Before you think you’ve found the perfect out,
think again. A short sale in Colorado is a complicated thing, just like a foreclosure.
They take a long time and much work, as well as support from a the interested
parties, including the bank or lender, a home buyer, and you.
If you're way behind on your payments and you’re facing foreclosure, your lender
won’t just offer you a short sale. You will have to show that
your personal situation warrants a short sale, which normally involves providing
evidence that shows you are indeed in financial trouble with no other options.
And even if your situation seems to fit, the bank or lender must still decide if
your particular situation works for them financially.
As the homeowner, you’ll need to find a buyer for
your home in Colorado.
And as you may know, selling a home takes time, especially in today’s market.
Together with complicated processes to assess recent sales in
the area and the fact that the lender must decide if the price is right,
things could take a while.
Caledonia Property is experienced at closing successful short sales. We manage the
whole process for the homeowner and can do it in such a way that often the homeowner
does not get chased by the lender for a deficiency judgement and does not have to
pay tax on the discounted amount. |
