Time is ripe to embark on a Short Sale

Yes – there can be no better timing as of now, to get out of your impending foreclosure, by selecting the escape route of Short Sales. The foreclosure crisis is at its high in all parts of the nation, allowing certain fluctuations in the monthly statistics though. As of January 2010, totally 315,756 US properties have received foreclosure filings – default notices, actual foreclosure and repossession after foreclosure public auction. One in 409 housing units has received at least one foreclosure filing.

Out of this national figure, six States account for nearly 60 per cent of the total foreclosure filings. They are – California, Florida, Arizona, Illinois, Michigan and Texas. The top ten 10 Metro cities reporting highest foreclosure activity are – Las Vegas (Nevada); Phoenix (Arizona); Modesto; Stockton; Riverside-San Bernardino-Ontario; Merced; Vallejo-Fairfield; Bakersfield (all in California); Cape Coral-Fort Myers and Orlando-Kissimmee (in Florida).

So you can see the foreclosure situation is not bright. If you are caught up in any of above locations, chances are that you are sailing in the same boat with other distressed home owners. Foreclosure is a long drawn process, where the lender and the barrower are put to hardships – loss of time, money and prestige.

The inventory of unsold homes – foreclosed and waiting for public auctions as also repossessed by banks and lenders after foreclosure public auction – are huge. In this melee if your property is caught up, it will be months for you to get back your mental piece.

On the other hand there is an alternative option available in front of you – the Short Sale option. This is a compromise with the mortgage lender that instead of going in for foreclosure – you can sell off your housing property to a prospective buyer, with the consent and approval of the lender. You will be “fully released” from the mortgage debt, by paying off the mortgage on completion of the Short Sale and realization of the proceeds.

Remember – the Government has come forward with tax credit incentives for home buyers – $8000 for first time home buyers; $6500 for home buyers who have lived in their principal residence for 5 years and now wish to relocate to a newly bought house; and increased income limits for individuals and couples.

So the timing is ripe for you to cash in on these favorable circumstances, by exercising the best option of Short Sale of your distressed property.