Receiving a Notice of Default (NOD) is a horrible way to start the New Year. But the San Jose Short Sale Agent believes it can also be a blessing in disguise.
Once you receive an NOD, that means the lenders already know that you have missed several mortgage payments and don’t have the ability to maintain them. As I have been saying for years, the lenders do not want you to go into foreclosure. They prefer that you do a short sale because they can keep the properties off their balance sheets and have homeowner cooperation in selling the homes. A home that an owner lives in will show better and command a higher sales price than an empty and abandoned REO property.
It is also better for the borrower because the home will sell quicker for higher price, which means the lenders will approve the short sale much quicker. The biggest damage to homeowners during the short sale process is the time it takes waiting for the approval to come through. Every 30 days of non-payment gets a ding on their credit score, so it will take longer and longer for them to recover after a protracted waiting period. A quick sale means quicker recovery of credit damage so they can qualify quicker to buy a home again like so many previous distressed sellers are doing today.
To incentivize those homeowners who are still on the fence or still simply misinformed about the short sale vs. foreclosure process, the major lenders are offering cash incentives of up to $45,000 to complete short sales. They want to pay you to do short sales and are eliminating barriers to do so quicker!
You just received the NOD, due to your current situation, you cannot afford to keep paying the home, but you cannot sell it because it is underwater. Why not take the time to contact someone to see if you can qualify for some of these large cash incentives? What will it harm, if you already came to the conclusion you cannot afford to keep your home? Wouldn’t it be tragic if you wasted your 90 days doing nothing, and the lenders file a Notice of Trustee Sale (a.k.a. Auction Date) and they no longer want to talk to you about paying the incentive?
Yes, it is a tragic situation, but you can choose to look at it as a blessing. Talk to me or someone and see if your lender is willing to pay you a cash incentive to complete a short sale and avoid a Foreclosure proceeding. Many major banks are participating in such programs. The true tragedy will be if you miss the opportunity to receive funds to help you relocate to another place and while saving your dignity.