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| New York Short Sale Frequently Asked Questions |
- I've missed a few mortgage payments, what will happen?
Your home may undergo the foreclosure process, but there are ways for you to prevent this from happening.
- What should I do once I'm behind on my mortgage payments?
Don't wait, get help early! By actively working to resolve the issue as soon as possible, you greatly increase your chances of avoiding the loss of your home through foreclosure. If you even see the possibility of missing a payment, contact your lender and explain your financial situation. This act of initial contact, before letters of delinquency arrive, will help your lender understand that you are facing issues that impede your payments, providing your lender an incentive to find a proper "work out" resolution, or to begin modifications to your loan.
- What is a "work out" resolution?
Commonly, the term "work out" resolution is an agreement where you continue making payments on your past due amount over a period of time, or a modification to your loan to lower your interest rate, or an extension loan period that will help lower your payments.
- I am in the foreclosure process, should I stay in my home or leave?
You should contact your attorney to determine the best course of action. Abandoning your property may have severe negative consequences on your qualification for assistance.
- Do you have any other advice?
Always be wary of potential scams. Any person or company offering a solution that sounds overly optimistic may be trying to take advantage of you during your time of financial troubles. Some warning signals of a scammer include anyone who charges a fee before any services are completed.
- Why would my lender rather help me stay in my home than foreclose?
There are several reasons your lender may be interested in other options than foreclosure. Most times, the lender will take substantial financial losses, on average $50,000, from a home foreclosure. Mortgage companies are not interested in owning and selling homes.
- How common is foreclosure?
Unfortunately, foreclosures are becoming more common and happen to many Americans. Although the number of foreclosure filings vary from state to state, and even from one financial quarter to the next, the number of filings nationally in 2008 was 3.1 million for 2.3 billion U.S. properties. This is an 81% increase from 2007 and represents 1 in 54 housing units in America having received at least one foreclosure filing during 2008.
- Do I get any money back from a short sale?
Your Lender in many cases, will offer cash back incentives to homeowners who complete the short sale successfully. The Home Affordable Foreclosure Alternative(HAFA)program offers qualified homeowners $3,000 and up cash back to help with relocation expenses. This is in addition to any other relocation assistance and incentives specific to your lender.
- Who will pay the short sale Realtors® commission?
The lender will customarily take care of all fees associated with the short sale process; this include your Realtor commission as well. In most cases, seller pay nothing out of pocket to complete a short sale. Your short sale specialist or attorney will ensure that all expenses are listed on the HUD-1 form and send to the lender for approval.
- Can I still do a short sale even If I am going through a foreclosure?
Absolutely. You will not be asked to move out until the closing. If your specialist is actively working with your bank, your lender will typically delay the foreclosure proceedings making it possible for you to stay in your home a little longer.
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