In purchasing a property, no one is imagining that he/she will face foreclosure in the coming years. A lot of factors such as economic downfall and real estate market downturn may lead homeowners to lose their properties. The foreclosure process can be stressful and damaging to homeowners’ personal savings, assets and even credit lines. This is definitely an ugly situation to be in.
In this blog, we will be sharing Top 6 reasons on why to Short Sale Your Home and how we can help you with the process. But first, what is SHORT SALE? A short sale permits the borrower to sell a home to another person for less than the money outstanding on the mortgage. It is a transaction in which the bank lets the delinquent homeowner sell the home for less than what’s borrowed. Here are the reasons why you should “short sale” your house:
PROTECTS YOUR CREDIT
As a lender, it is always better to get a portion of your mortgage loan than totally losing everything completely. This means banks will surely accept short sale than facing foreclosure. This will put the lender and the homeowner up to a better place.
LESS CREDIT DAMAGE
Choosing short sale over a foreclosure is surely a very good choice. This will totally be impacting your credit score because, after a short sale, lenders will report the discharge of the mortgage loan. A foreclosure will totally hurt your credit score and this will totally have a negative impact in the coming years.
HOMEOWNERS ARE IN CONTROL
Foreclosure is a tiring and tough process to undergo. You will be bombarded with demand letters and complicated documents that would just add to your confusion and stress. In a short sale, there will still be meetings and a few negotiations for the homeowners to work on but it won’t be as perplexed. It’s like a conventional sale, unlike a straining foreclosure process.
Paying high mortgages will totally drain your source of income and will really force you to a foreclosure process. It will be risky if you are paying a mortgage that is higher than your home’s value while in a short sale, you will be able to sell your house if you find it difficult to pay for its mortgage or even when your house value dropped.
A short sale is the same as a traditional home sale. A real estate agent will walk you through the process of selling your house to a prospective buyer. The lender will specify a short sale time frame, like six months, giving you more time to pack and find a new place to live than a foreclosure typically would.
IT GIVES YOU PEACE OF MIND
A short sale doesn’t mean that it won’t have risks involved at all in terms of the homeowner’s credit. It won’t cover up the implications that the homeowner was not able to pay for some of the mortgages, however, a short sale will open the door to solutions for homeowners. It puts them in a better position, lessens the financial burden and can save their credit score to a certain degree. This is really the “light at the end of the tunnel”. A short sale will give homeowners a chance to start all over again and make a strong comeback in rebuilding re-owning homes.
A short sale may not be enough in paying the whole amount that you need to pay but it will totally help in some aspects. At the end of the day, a short sale is a better option than just waiting for a Foreclosure. We at We Treasure Any House will be very glad to extend help you out on your Short Sale journey.