Preventing Foreclosure: What to Do When the Sale Price Leaves You Short

The Short Sale Defined:  A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

Steps to Take When You Consider A Short Sale
If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale.   Click here to learn more.

Understanding The Lender
A good place to start is by understanding the position of the lender. A game plan for survival should be based on a realistic view of what the lender is likely to be willing to do. Click here to learn more.

Developing A Game Plan
Borrowers in trouble should develop a game plan before they become delinquent. Step one in that process is to develop a realistic understanding of the position of the lender, as discussed above. While some actions you can take on your own, such as selling your house, other actions have to be negotiated with the lender. You do better in any negotiation if you know where the other party is coming from. Click here to learn more.