The type of mortgage you have effects your ability to qualify for a short sale. Below is a bit of information about different types of loans and how they might effect your ability to move forward with a short sale
Fixed-rate mortgages Fixed rate mortgages are mortgages where the interest rate stays the same for the entire term of the loan. The advantage to a fixed rate mortgage is that if you lock a relatively low rate, your payment won’t go up when rates do.
If your fixed rate mortgage is for your principle residence, you may qualify for a short sale. If the mortgage is for rental property or a second home, your attorney can help you decide if a short sale is a viable option. Laws about deficiency judgements may come into place and should be evaluated by a legal authority.
Adjustable-Rate Mortgages With an adjustable rate mortgage, the rate of the loan can change throughout the term of the loan. The rate of the loan is based on adding points to a fixed base.
Same thoughts as above.
FHA real estate home loans An FHA loan is a loan in the United States that is insured by the Federal Housing Administration.
Most FHA loans will be considered for a short sale.
VA real estate home loans A VA loan is a loan in the United States guaranteed by the Veterans Administration. The loan may be issued by qualified lenders. The VA was designed to offer long-term financing to American Veterans or to their surviving spouses.
Most VA loans can be considered for a short sale.
