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Sort Sales -- Again!Homeowners are once again taking a hard look at short sales because, well, their mortgages have capsized. This time around upended mortgages are the result of a variety of factors from risky, high-leverage, little- or nothing-down mortgages that don't begin with any equity to interest-only or optional-payment mortgages that don't build cash equity as well as appreciation that balks, or a combination of all of the above.The short sale strategy can sometimes ease you into dry dock better than a bankruptcy or foreclosure, but only if you survive the trip to shore. A short sale is a difficult consumer real estate transaction to approve and involves as much, if not more paperwork than an original mortgage application. That's because, instead of proving your credit worthiness and financial stability, you must prove you are broke. You must be without cash flow, including savings, investments, trusts, liquid retirement funds or other finances to tap. Ironically, while you are proving insolvency you also may reveal the dark under side of your original application. Insolvency today could be rooted in financial trouble that began before you purchased your home -- trouble you didn't reveal to your lender who could now consider your tight lip fraud from the past. That might attract the attention of federal authorities who've been cracking down on mortgage fraud, a federal crime punishable by up to 30 years in a federal pen or up to $1 million in fines -- or both. According to the FBI's "Financial Crimes Report To The Public Fiscal Year 2006," 20 percent of today's mortgage fraud stems from a home buyer lying about income, debt or other information in order to buy a home. Much of the remaining 80 percent of mortgage fraud also involves deceit, deception and misinformation, according to the FBI. click here for complete article Need to sell you home, condo or building lot? Visit 888SOLDin9 to talk with our Jacksonville FL 888soldin9 partner about your personal financial situation. Our Jacksonville FL partner, Jim Tallent buys, sells, renovates and rents homes and properties in Jacksonville FL, Duval County FL and Northeast Florida. |