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Rates are flat today. Today’s rates with no lender fees are 3.625% APR on a 30 year, 2.875% APR on a 15 year and 2.875% APR on a 10 year. (click here for details)

Today is a little bit about short sales and how they may not be the best option in some cases.
Check it out in today’s video:

Firstly, what is it? For those of you that don’t know, a short sale is an alternative to letting your house go into foreclosure. If you’re underwater on your home, meaning that you owe more on your home than it is worth, you may need to do a short sale in order to sell your property unless you want to bring the funds to closing.
This will allow you to sell the home for less than the mortgage balance with approval from your mortgage servicer. However this is where it can get tricky. Your servicer might require you be 2 months late on your payments to even consider it, and may even take up to 6 months for approval.
There will be some requirements that you must meet in order to qualify for a short sale and each servicer will be a little different.
The truth of the matter is that a short sale can be just as bad as a foreclosure on your credit. Doesn’t make sense does it? Now if you were current on your payments and your servicer allowed for a short sale it will have less of an impact but that is kind of like a big foot siting. You only hear of them and never see them being done.
The truth is, at a certain point of missed payments there is no advantage of a short sale to the seller. The foreclosure seems more logical.
If you’re in the foreclosure process it can take forever these days and you don’t have to make a mortgage payment. This is the route most people take. With that being said, there are two things to be aware of if you are buying a short sale.
1. As stated before – they can take forever to be approved by the servicer so be prepared to wait…and wait.
2. You should definitely use an experienced realtor when buying a short sale. If you plan on doing it on your own, you may as well negotiate the sale of Facebook while your at it. It’s just not happening!
If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.
Let’s change the way people shop for a mortgage…forever!
– Mike
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below.

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