San Jose Short Sales

If you are the owner of a San Jose home and you are facing difficulties in making your mortgage payments, you may be interested in learning more about the San Jose short sale process. A San Jose short sale isn’t for everyone – the process is long, complicated, and fraught with stress and red tape.  If you are still employed or able to negotiate a successful loan modification, a short sale is probably not necessary.  However, if you are in serious danger of facing a foreclosure on your San Jose home, a short sale may be  your best option for getting out of the loan without extensive damage to your credit or prospects of owning a home in the future.

For those facing foreclosure, every option appears daunting sometimes.  And in some ways, short sales achieve the same ends as foreclosures – the owner is released from the loan, the bank loses some cash, and the property changes hands.  The main differences between short sales and foreclosures are: (a) the bank has to grant approval for short sales, whereas the bank makes demands in a foreclosure, (b) short sales do not always have to be disclosed on a seller’s credit history, and will affect that history for a much shorter period of time.

San Jose short sales start when a home is underwater – in other words, the remaining balance on the mortgage is greater than the home’s current market price.  Once this has happened to your San Jose home, and assuming that you want to avoid foreclosure, you have a limited amount of time to decide between a San Jose short sale and a radical loan modification.  Which choice works for you will depend on your financial situation, and on how efficiently your lender processes loan modification requests.  If you are fairly certain that you will not be able to get your mortgage payments back on track, a San Jose short sale may be the way to go.

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