When a Short Sale is right for you

(c) Copyright 2006 by Cal Franklin

What you are about to read... can save your credit record, your future bank account, and even your dignity. Please don’t take it lightly; it can save you or someone you know from irreparable financial harm.

Foreclosures are at an all time high

Too many banks are making irresponsible loans. Especially in today's over-inflated real estate markets like southern California, homeowners are allowed to take on much more debt with smaller payments than they ever could have in the history of this nation. They've even started handing out fifty-year mortgages now! I could write an entire article on the subject of how we got into this horrible situation, (and I probably will soon) but the bottom line is that if you have bitten off more than you can chew with your mortgage, then welcome to the majority!

Your so-called options

This majority of America, those going down in flames now or soon to be doing so, is in desperate need of a way out. There are four traditional routes that these people know to take, which I'll briefly cover before introducing you to the Short Sale route.

Refinancing your mortgage is the first route that we all think of, thanks to the arketing power of our lenders these days. But at best, it’s just an expensive stall tactic. At worst, it’s a way to make the problem bigger and even faster. Refinancing will always ensure that your debt will be even larger after the higher rates and added closing costs, no matter how creative they can be with the payment size.

Selling your home through a realtor? This is usually not at all practical, unless you have some equity built up, and then accept a loss in any city but the very hottest seller's markets at the moment... So you'd have to be very lucky to happen to be living in one at the time you want to sell.

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