How Do You Handle A Pre-Foreclosure Short Sale?
A pre-foreclosure short sale is an option that is available to homeowners who owe more on their houses than they are worth, and who are having trouble keeping up with the mortgage payments or who have to move. While a pre-foreclosure short sale will be hard on your credit score, you will be back on your feet, financially speaking, sooner than if you choose a foreclosure. Here are some tips on handling a pre-foreclosure short sale situation. Step 1 Have your house appraised. If the house is worth at least the amount of money that you owe the bank, then a short sale probably will not be necessary. If the house’s value has dropped since you bought it, a pre-foreclosure short sale might be your best option. Step 2 Call your mortgage company. Let them know that you are having trouble making your insurance payments, and that you’d like to discuss the possibility of a pre-foreclosure short sale. If you don’t have a contact person at your bank or mortgage company, this is the time to make one.
