What to Do With Vacation Home in Foreclosure

Shortsales Fall Short

Another route people will sometimes take when facing foreclosure is doing a “short sale”.  A short sale means that you sell your house for the current market value which is less than you owe on the house and you get your lender to agree to it and take the lesser amount. 

Often people facing foreclosure will consult a realtor, perhaps the very one who sold them the home they are living in, and the realtor will recommend a short sale.

Realtors usually recommend short sales for two reasons:

1)     That’s what they know;

2)     And they make a commission when they short sell your house!

However, what they don’t often say is that they are severe consequences to short selling your home:

An Ugly Truth Banks Don't Want YOU to Know

The biggest reason that loan mods are virtually never granted is that the so called “lender” is actually only a servicer of the loan and not the true holder of the note.  We’re going to talk about this in more detail in a subsequent blog post but knowing that this is true in 80 to 90% of all mortgages (originated or refinanced from 2000 to 2009) can save homeowners a lot of heartache.

What we see so often is homeowners trusting in the “nice people” in the loan mod department who are “working hard” to push the loan mod through.  However, they just need more information or they lost what was already sent them or there are further questions that need answering, and so forth.  THERE ARE USUALLY DELAYING TACTICS ON THE PART OF THE BANK.