Short Sale or Foreclosure?


Listed below are the options?

  1. Do Nothing – Not the best option, this will generally end in foreclosure.
  2. Payoff/Refinance – Completely pay off the loan or refinance.
  3. Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
  4. Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan.  To do this you need to qualify with the lender.
  5. Forbearance – Lender may be able to arrange a repayment plan based on the homeowners financial situation.  Temporary payment reduction or suspension of payments.
  6. Partial Claim – A loan from the lender for the 2nd loan to include back payments, costs and fees.
  7. Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing.  Generally need to be up to date with payment and home has been well maintained.  This is not available if there are two different lenders.
  8. Bankruptcy – This option can liquidate debt and/or allow more time. Bankruptcy lawyers can advise.
  9. Short Sale – If the property has no equity, also know as a pre-foreclosure sale, can be negotiated with your lender by a Real Estate Professional if the amount owed is MORE than the property’s value.

Murray Realty has made this our priority to keep up-to-date and informed, with the current requirements for the Short Sale market.  We can help you decide which is the best path for you and also, assist you with selling your home and negotiating with the bank.  During this time we recognise that this is a very emotional and stressful time and we work hard to make the transition as smooth as possible.