Mortgage got you down?

Mortgage Troubles?   You’re not alone!  Approximately 11 million U.S. home owners are upside-down on their mortgage.  Now is the time to take advantage of programs designed to help.  Homeowners who are “underwater” in their homes – owing more on their mortgage than the value of the home – can turn to a short sale to avoid foreclosure.   Simply put, a short sale is accomplished when the homeowners sell the property and their lender or multiple lien holders agree to accept the sale price as payment on the loan. First, review your options. The table below shows several options and the associated impact of choosing one over the other:
Optionsà Loan Mods Short Sales Deed-in-Lieu Bankruptcy Foreclosure 3Impact ↓↓↓ Debt Relief Deferred pay or reduced rates Property debt relief Property debt relief Personal & property debt relief Property debt relief Keep Home Yes (for now) No No Maybe No 2Credit Score No impact ~50+ points (w/o late payments) ~85-165+ points ~100+ points ~85-165+ points 2Credit History No impact “settled or paid as negotiated” 2-7 Years 10 years bankruptcy entry 10 years foreclosure entry Future loan accessibility No impact 2 years (less w/o late payments) 2-7 Years 2+ years 4-7 Years 1Tax implications N/A Tax forgiven Tax forgiven Tax forgiven Tax forgiven
1Mortgage Forgiveness Debt Relief Act of 2007 – Federal Tax on deficient amount forgiven through 2012 on primary residence. 2Credit ratings are illustrative purposes and may not reflect your specific scenario. 3Consult your CPA and legal advisor for details specific to your situation.
In many cases, a short sale can be the best option and offers many benefits such as: Property debt relief Less impact to credit score Shorter credit history records Future loan accessibility Ability to exclude forgiven debt from federal tax Stops any ongoing foreclosure. Ability to stay in the home until it is sold. However, the process can be complicated and frustrating.  Our team has 16 years of experience and has been through it many times.  We understand the short sale process and will: manage the process from start to finish keep you informed along the way help deter harassing phone calls do the work for you at NO out-of-pocket cost to you. Contact us to schedule a free and private consultation.
Donita Dickinson Designated Broker Email: Donita@donitadickinson.com ( (206) 979.7370 | Ê (800) 756 5914	David Parsons Real Estate Broker Email: David@donitadickinson.com ( (425) 879.0848| Ê (800) 756 5914

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