What are the pros and cons ? short sale-pros and cons Debt Settlement?
What are the pros and cons ? short sale-pros and cons Debt Settlement?
My wife and I are planning to sell our home of eight years.
Unfortunately, due to the housing slump here in New England our payoff
is approx. 25,000 more than the home's estimated value. Our agent has
referred us to a consultant, HMR Consulting of MO, who claims to be able
to negotiate a settlement for us that will satisfy the debt without
harming our credit rating.
Has anyone had experience with this company, or this type of sale in
general? It seems too good to be true, but before I send these folks
$500 of my hard-earned money I'd like to find out more of whats
involved, or what to expect. Any thoughts would be appreciated.
You're being taken. Yes they probably will do what they say, but you
can do it yourself and save the $500.
If you owe more than the house will bring in a sale there are only a
few options.
1. sell it and default on the loan.
2. sell it and pay off the loan at closing.
3. don't sell it and keep paying the mortgage
4. sell it and pay off the loan after closing.
What they'll try to do is negotiate option four with the lender. You
can do it yourself. Just approach them with the facts. Basically they
have the option of you defaulting on the note or renogotiating new
terms that will go on past your sale of the home. Naturally they won't
like this because now they'll have an unsecured note. But it's better
than you walking away from the loan and leaving them to reposses the
house.
If they won't take you seriously you might want to contact CCCS. They
can be found using a search engine. They're a national organization
that specialized in consumer credit counseling. If you have a local
office they might have more success in dealing with your mortgage
company.