Are you upside down on your house?

When you’re behind on your mortgage with no foreseeable means of getting caught up on your home loan, there are limited options available. For homeowners who owe a balance that’s about equal to the value of the home, one option is to sell the home to a private investor prior to progressing forward and proceeding with a short sale.

The problem with a short sale is that the lender is in full control of the transaction. You, the homeowner, have little — if any — leverage or control in the situation, which can be very frustrating. But for those who owe an amount that’s close to the value of the home, you may be able to sell your home before the lender moves forward with a short sale or the home goes out to bid at auction.

A short sale entails the sale of your home for an amount that’s less than what’s owed on the home loan. The lender agrees to accept this lesser amount and the borrower is released from further obligation in most cases. The main drawback to a short sale is the fact that the lender can take months (or even longer!) to decide whether they’ll accept a prospective buyer’s offer. This leaves the homeowner in limbo, not knowing precisely when the sale will move forward. This can make it very difficult to make plans to move to a new home and you risk losing your buyer if the bank takes too long to decide whether to accept the offer.

New laws do make the short sale process a bit easier for the borrower/seller. Relatively new federal short sale legislation, which is part of the Home Affordable Foreclosure Alternatives program, does require lenders to make a decision (as to whether to accept an offer) in a more timely manner. What’s more, the lender must decide the minimum amount it will accept from the get-go. The lender must also provide the seller with a $3,000 allotment for moving expenses, providing they leave the home in good condition.

Even with these new regulations for short sales, the process can be a difficult and very stressful one for the homeowner. Selling your home to a private investor allows you to maintain a degree of control in the situation. Plus, most investors, including Teele Enterprises, Inc., are willing to work with homeowners — a degree of flexibility that’s quite rare when dealing with the banks. What’s more, an investor won’t ask you to make improvements and upgrades as is commonplace when selling your home to a traditional buyer.

If you’re seeking to sell your home, take a few minutes to complete our distressed property form. Then, contact Teele Enterprises, Inc. by calling 224.343.6890.

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