Is an Austin TX Short Sale or Loan Modification My Best Option? | Capitol Home Team
If you are reading this post, it is possible, likely even, that you are or are about to become a distressed homeowner. Researching what to do in this situation takes courage, especially since it's a time that most people want to just shut down and hope it all goes away.
But you are making a great step forward in wondering what the options are. So, you might ask, is a short sale really the best option for me?
Well, yes and no are both possible answers. Let's just say it depends. Here are some examples/ideas about general circumstances:
- Are you not yet behind on your mortgage payments, or maybe just one or two payments behind?
- Is your current financial situation likely permanent, or is it just temporary?
- Do you want to keep your house if at all possible? If so, do you think it is a realistic option?
As short sale specialists, we can tell you that, in general, a short sale is the last, best alternative to foreclosure. If it is a temporary financial setback, it's possible that your lender will allow a temporary or permanent loan modification to help you stay in your home. These can be time consuming and tricky, plus there are a lot of scammers out there who say they will help, but just want to take your money or your home, or both.
It would be a good idea to talk to a HUD counselor (for free) to discuss your existing financial circumstances to help make this decision. They can help you get started in the process.
A loan modification is rare, like a unicorn. But a few do get approved. These really need to be negotiated by the homeowner, but we can give you some free guidance.
If you have already heard from your lender or lenders that foreclosure actions have begun, then a short sale is probably your best option. I recommend that my clients speak to a real estate attorney if they are confused about which avenue to take in the various stages.
Keep in mind that lenders can move forward with foreclosure steps even during negotiations for a loan modification or forbearance.
We offer a free 5-minute phone consultation to discuss the options available. Contact Aaron at 512-845-4204 if you need to talk. Our services are respectful, honest, and discreet. Thanks for reading!