Short Sale Help

My suggestion is to do a short sale and leave. I wouldn't want to keep paying on a property that is under water and losing even more value every day.

The mistake people make is identifying too closely with their house. Hey, it's a house with a loan on it. That's all. It isn't you. It's not personal. It's the house. If you can get over this big emotional mistake of identifying with your house, you can act dispassionately.

Then you can clearly see the advantages of getting out via a short sale.

And if you want a lot more hard core, insider information on short sales, you can get a 25 page free report that you download that is packed with information on how to avoid foreclosure, keep good credit, and more.

In a short sale, you tell the lender that you will market the house and sell it below market. The lender will accept the proceeds from the sale as payment in full for your loan, even though your loan may be much higher than whatever the buyer pays. If your loan is $300,000, and your buyer only pays $200,000, your lender forgives the $100,000.

Short sales are worth doing for both you and the lender. You get a better cleaner credit report out of a short sale than you do out of a foreclosure. And the lender saves money and grief over what they would spend in time and money if you become another foreclosure statistic.

How to walk away from your mortgage — and keep good credit

Despite short sales being a good thing for everyone, lenders are screwing themselves because they lack the staff to handle the influx of short sales that homeowners are submitting. So buyers make offers, and must wait often months for approval. With the months of waiting and the effort involved dealing with the lender's bureaucracy, not to mention the uncertainty, no wonder the buyers are paying about 80% of fair market value for these houses.

Lenders shoot themselves in the foot and end up with perhaps 5% to 10% less than they would if they simply had some more staff to handle the short sale packages they are receiving.

Ethically, I have no problem with short sales. The lender is getting out in better shape than they would otherwise. And you the borrower, the homeowner, are what you have to do to save yourself and your family.

But the key is that you have to sell your house to do a short sale. And besides that, what people fail to understand, is you have to get your short sale package to the top of the pile at the lender's office. Your package has to win their attention so they say "yes". Most of these packages just sit there and the time ticks away and everyone loses.

If you can get the lender to approve your short sale, you can walk away pretty much unscathed. You can have good credit. You can even fix any negative reports they may have made about you, reports that say you were late. And you won't face any more of those huge loan payments. You'll be free and clear, baby!

But first you gotta get there. The way to make sure that the lender says yes is to give the lender *exactly* what they need to see. And where people fall down here is they don't spend the all of two or three hours putting together the short sale package. Or they don't sell their house.

To get out from under and successfully complete a short sale — it isn't that hard. But first you must sell your house, and you must do so quickly. Without putting money into fixing up your house. And without giving the house away so cheap that the lender will look at your short sale package and say "forget this" and put you at the bottom of the pile.

Click here to learn how to sell your house fast without fixing it up, even when there are no buyers!