Please call Cheryl today.  It is the easiest and most productive step you can make to turn things around.

Also: Please click the icon above for more help at "Look Before You Leap", a statewide public education campaign raising public awareness about the booming mortgage rescue scam industry and its dangerous implications for struggling and unsuspecting home owners.  Then, read here to learn how you might be able to benefit from a short sale.

A short sale is selling your home when you owe more money in your mortgages than the price your home will sell for.

How can this happen? It can work one of two ways.  The first and most common situation these days starts out as somebody gets behind on their house payments.  The homeowner realizes he or she won't qualify for a loan modification and won't be able to catch up.  As foreclosure proceedings begin, the homeowner decides to try to save his or her credit score and sell the home.

The second situation occurs when someone decides to move and he or she owes more in mortgages than what the home can sell for.  The mortgage companies typically expect the homeowner to make up the difference at the closing of the home, when ownership transfers to the new buyer.

Let's go back to the first scenario.  Every state has different foreclosure laws.  Minnesota has one of the longer redemption periods.  Typically, in Minnesota, it is 6 months.  Certain circumstances can make it longer, like if the property is a farm, for example.  Many states have redemption periods as short as 5 weeks.  The redemption period starts at the time of the "sheriff's sale".  This "sheriff's sale" is a "sale" in name only.  The homeowner still owns the property through the end of the redemption period.  The "buyer" at the "sheriff's sale" is the one who will own the property at the end of the redemption period.

So why not just let the home go into foreclosure?  What is the point of the short sale? A short sale will typically be a lighter long term impact on a credit score than a foreclosure.  And, these days, your credit score can affect everything from your car insurance rates to your ability to get a job. 

So, why not opt for a short sale?  There are a few instances where it just won't work.  Many of the mortgage companies want the home on the market for at least 90 days before they will approve a short sale.  It is important to call your real estate professional to discuss timing as soon as you decide this might be an option for you.   Once a purchase agreement comes in, the mortgage company could take several weeks or more to send their approval.

All in all, the most important thing is that the foreclosure process can be emotionally draining for the homeowners.  In most cases, families aren't ready to move and really don't want to move.  It is helpful to transfer some of the burden to your short sale experienced real estate professional.  Cheryl's guidance can bring control back to your family's world.  The transition can be smoother with a knowledgeable friend in your corner. 

  You hear about short sales in the news everywhere these days.  Just what are they and what is the point?

So why not just let the home go into foreclosure?  What is the point of the short sale?

A short sale will typically be a lighter long term impact on a credit score than a foreclosure. 

And, these days, your credit score can affect everything from your car insurance rates to your ability to get a job. 

A short sale could make your credit score dip about 50 points, where a foreclosure can sink it 150 to 200 points.

If you decide to consult an attorney, you should know that many attorneys are specialized in their particular field of practice and do not know the latest real estate law and initiatives from the government that are in place to protect today's homeowners.  Cheryl can put you in touch with CPAs and actual real estate attorneys who can provide the best advice for your situation.  More often than not, this includes selling the home for less than what is owed on it, even if you have filed for bankruptcy and have included the mortgage companies in the bankruptcy.  Walking with homeowners through this maze and helping them transition to a new home is something Cheryl has been doing for years. 

Additional resources are available online:

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation:  This IRS webpage explains how most forgiven debt (the loss the bank takes on a short sale) is no longer a tax liability.

Loan modification new program updates:  New website to share resources to help determine if folks qualify for loan modification.