In a short sale, this would mean that a homeowner is selling the house less than the mortgage loan amount. In this setup, the lender needs to agree and approve the deal. This can be a good alternative to foreclosure.
This may mean that you would be receiving a relatively low amount compared to what you are expected to receive but a foreclosure is a damaging process to you as a homeowner, high costs for the charges and also the repairs and maintenance will be really cost you an arm and a leg which will totally hurt your budget and break your bank to some extent.
In many cases, homeowners who are giving in to a short sale may require the buyer to work on some maintenance and home repairs and this can be a win-win situation to the homeowner and the buyer who is willing to work on it and get a great house deal in return.
The “better” Option
Homeowners may face struggles in paying their mortgages. This might be the “better” option than a foreclosure and to lessen debt. This will be a great help in slowly paying off your debt and bounce back and start over again.
Here are more benefits of Short Sale:
- Mortgage payments will be off of your lists.
- You can get help from the new owner of the house that will help you with your concerns and help you carry and lighten your burdens.
- After 2 years, you can purchase a new house instead of waiting 7 long years after an unfortunate foreclosure.
- You are totally in control, not any institution such a bank.
- No foreclosure stressful process will be undergone.
- The wait for a short sale approval can extend the amount of time you can reside in your home
- The lesser impact will be affecting your credit score which you can quickly overcome than having a foreclosure.
- For loan applications, they will not be meticulous with the process as a foreclosure, they will treat your short sale case as a regular home sale.
- While waiting for the approval of your short sale, you can still live a little bit longer in your home.
A short sale may not be as beneficial to you as a regular home sale, it can still help you in many ways possible most especially in avoiding foreclosure.