When a property is sold for an amount that is less than it is worth or less than the balance owed to the bank (with the approval of the lender), it is referred to as a short sale. The funds acquired during this sale are given to the mortgage holder and applied to the balance… [Continue Reading]
Foreclosure With More Than One Loan Against Your Property
A foreclosure may not be the end of a homeowner’s financial problems if the homeowner has multiple loans secured by the home. These additional loans are generally known as junior liens, and they can take the form of second mortgages or home improvement loans. The lenders of these loans are usually behind the original mortgage… [Continue Reading]
Short Sale as a Way Out of an Underwater Mortgage
Most homeowners try to avoid foreclosure and the financial damage a foreclosure can cause by seeking out ways to work with the mortgage lender. Once a mortgage lender forecloses on a loan owed by a homeowner, the foreclosure is noted on the person’s credit history for a period of seven years. This negative notation can… [Continue Reading]
