You are about to learn what a short sale is. Let’s start off with some questions and answers below.

1) The definition of a short sale

A short sale is when a borrower must sell their home and the proceeds are less than the amount owed to pay off the mortgage balance. A short sale is appropriate for sellers whose financial predicaments require that they liquidate their interest in their house and who are not able to qualify for other other modification options. Simply put a short sale is when the value of the property has dropped below the current mortgage balance owed.

I’m looking into buying a foreclosed house or possibly talk with a homeowner in the LA area who has a Notice of Default to take over the title and help them avoid Foreclosure. (Plus this is the only way it seems I can afford a place.) Does anyone know if there is incentive for someone to let their house foreclose? If not, why not make offers way below market value to NOD homes? I’m just trying to understand how the market works. Also, can you make offers on Foreclosed homes that would be considered by banks, or do they usually deal with specific REO banks and auction companies? Thanks.

my mortgage company has offered me a package to avoid foreclosure of my home. This package will leave me virtually no monies to pay any of my other outstanding debts which include my car payment – a car I need desperately in order to get to and from work – a drive of 20 miles each way. It also leaves me with little to eat on or maintain the daily expenses that life brings such as electric & gas bills. Am I better off just accepting the foreclosure and getting out of the house. And if so, what will this do to me in regards to getting any credit in the future.

my mortgage company has offered me a package to avoid foreclosure of my home. This package will leave me virtually no monies to pay any of my other outstanding debts which include my car payment – a car I need desperately in order to get to and from work – a drive of 20 miles each way. It also leaves me with little to eat on or maintain the daily expenses that life brings such as electric & gas bills. Am I better off just accepting the foreclosure and getting out of the house. And if so, what will this do to me in regards to getting any credit in the future.