Nobody wants to go through a foreclosure, but the economic downturn market is forcefully pushing a lot of people towards that direction. But foreclosure causes terrible experiences that will make you lose credit scores, deny you the chance to get future loans and affect your employment opportunity. A short sale provides an alternative when your lending company allows you sell the house for less than you owed; at current market value.
Foreclosures are painful and mentally depressing. You loose your home, your past, memories and everything you’ve ever worked for in your life. If you are having problems paying up your mortgage and your home is at risk of a foreclosure don’t wait for the unavoidable to happen; short sale your home to avoid foreclosure. The simple idea of a short sale is that you owe more than the worth of your house and you’re unable to settle the mortgage payment. So you’re asking your bank to allow you sell the house at an amount less than you owe; to a new owner who is only willing to pay for the home at the current market value. Short sale does not mean you’re getting a loan, but that the bank is allowing you sell the house for less its market value.
Why a short sale is better than a foreclosure?
Foreclosures can have serious impact on your credit score by reducing it to about 300 points. But a successful short sale may only affect you with 100 points.
How a short sale works
A short sale is just like the normal real estate transaction where you have to work with a short sale specialist to help market and sell your property. But in this case, both you and the agent will have to work hand- in-hand with a third party – which is the mortgage company. To begin your short sale you will first have to set the sale price of the home based on current market value. If applicable, you will also have to collect financial information and make negotiations with the other liens holders. Once you begin to get buyers you will have to review acceptable offers, agree to terms of sale when you have the main buyer and work with the buyer’s mortgage lender and short sale specialist to decide on the final sales.
It is important for you to know that before a short sale can work the lending company will have to approve the final deal. This contact is usually carried out by the buyer, and the lending company will have to be satisfied that the amount offered is worth the current market value. If you’re a seller you will have to pay taxes in some financial situations, and buyers need to investigate to know if the property has multiple liens that will not be removed even after paying the primary liens.
Facing foreclosure? We know the process, we can give you the expertise needed to save you from foreclosure.