When times got tough and our mortgage payments every month seemed like we were trying to pay off the National Debt alone, we knew it would not be long before the house was either sold or we defaulted on the mortgage. We were doing everything we could to avoid foreclosure. We were running one and two months behind on our mortgage. At one point we got three months behind. We had tried to sell the house but could not. We were under water with the amount still owed now, so we looked into short sales in Brooklyn NY to see what could be done.
Of course some buyers are interested in a short sale. They get a property for less than its value or at least get a really good deal. They can walk away with a property with no outstanding liens with the bank being happy. We needed to protect ourselves in the short sale as well. We were not going to agree to owing anything after the sale, and we did not want our credit further damaged beyond what it already was. The banks and other creditors all agreed to the short sale details. The buyer got a nice property, and we were able to get out from under a very bad mortgage that we should not have gotten into in the first place.
We were younger and made mistakes with our available credit. We were living from paycheck to paycheck just barely making payments on things. There was no money for savings for those rainy days everyone warns you about. Being young is all sunshine and rainbows, or just looking through rose colored glasses at the world around you. Then you slowly become aware of financial facts. Simply put, the math can’t be ignored. You either have enough money or you do not. At least the short sale kept us from total financial ruin.Continue reading →