Distressed Homes and Foreclosure

Remember the story of Chicken Little and the Sky is Falling?  That scene can describe homeowners when they get the news that their home is in foreclosure. A measure of panic is key and a necessary part of the mix. But the fact that there is a mix is important. Panic needs to combine with knowledge, resilience, determination and resources. There are options.  The earlier a homeowner acknowledges that they are in the process, the more options they have but they’re most likely to do well with a guide team.  The Lighthouse Team can help guide a homeowner through.

A short sale is the sale of a home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds and avoid foreclosure. If Fannie Mae is the first lien holder, we work with the mortgage company that services your loan (i.e. collects your mortgage payments) to communicate with you throughout the short sale process. We provide guidance to the servicer on who is eligible for a short sale, the property listing price, and acceptable contract terms and closing costs.

In addition to avoiding foreclosure, short sale benefits include:

• Eliminate remaining mortgage debt.
• Assistance for relocation may be available up to $3,000.
• Start repairing your credit sooner than if you went through a foreclosure.
• May be able to get another Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years).
• Avoid foreclosure.