Foreclosure short sale and the two types of foreclosures
David Silver
It's possible that you're now facing foreclosure because you can no longer pay for your mortgage. I want to help you with your problem by informing about the options you can take. With more information about short selling and the two kinds of foreclosures, you can make a better decision.
For best results, I suggest that you consult a real estate lawyer or a tax accountant before making any important financial decisions. But to get you started, let me give you some idea about foreclosure short sale.
You and your lender can agree to a short sale when the value of your house or property is less than your debt. For example if Luke has a $200,000 mortgage but his house is only worth $100,000 based on current market value, then he's qualified for a short sale. Short selling will not earn you any money or equity. In fact all the proceeds of the sale will be used to pay for your debt.
You can also choose foreclosure if you don't want to undergo short sale. There are two types of foreclosures, judicial and non-judicial foreclosure. When I say non-judicial foreclosure, your lender, through a lawyer or agent, will act as a trustee in order to sell your house in an auction. This process does not involve any court intervention whatsoever.
With non-judicial foreclosure your lender or your lenders agent will act as a trustee and sell your house in a privately run auction. This process will not have the court involved in any way. The problem with non-judicial foreclosure is the fact that you will not be exempt from any liability from financial responsibilities more important than your mortgage.
This is where a regular judicial foreclosure comes in. When you're in default, just let your property go and the court will handle all the legal and financial proceedings in relation to your property.
Sure, judicial foreclosure is much more complicated and expensive than short selling and non-judicial foreclosure. But the benefit of this process is about protecting your remaining assets (like your second house) from your lenders. Once the bank sells your house, your lenders will not be able to go after you for their financial losses.
To know more about foreclosure short sale, credit protection, zero taxes and how to avoid personal liability, sign up for my newsletter right away. You will get my exclusive 25 page report and how-to video containing very comprehensive information about the ins and outs of short selling.
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