The current economic crisis and the chance of an impending recession has driven the average real estate market, which worked on speculation and gambling to a virtual standstill. The credit that usually sustained it has disappeared as savings associations have started to massively recall their loans and to bring foreclosures down upon those who have defaulted.
If your home is on the verge of foreclosure or you fear the chance of it, you certainly will do any possible means to save it. But the problem is how you will do it? The first step, is going to your lender and asking for help. DO NOT OVER LOOK THIS OPTION!
A short sales is one of the tools mortgage lenders use in soft real estate markets to deal with the high tide of foreclosures they’re experiencing today. When a homeowner with a high mortgage balance gets behind on his loan payments, a lender has a decision to make related to how to handle the default. He can either start foreclosure procedure or try to get the homeowner to sell the property and pay off the loan.