10 Reasons Why a Short Sale is Better Than Foreclosure
Are you struggling to make your mortgage payments?
Is your home is worth less than you owe, and your finances are so shaky that your lender won’t modify your loan?
Have you tried to sell your home, but received no offers?
Are you nervous about the bank coming after you if you lose your home to foreclosure?
Before you resign yourself to foreclosure, see whether a short sale can get you out of trouble.
With a short sale, you accept an offer on your home that’s less than what you owe on your mortgage and your lender forgives the difference. You walk away with no outstanding debt and less damage to your credit history than a foreclosure, and… you can qualify for an FHA-backed loan two years after a short sale, compared with five years for foreclosure and seven years for bankruptcy.
The best part about a short sale is that there are no fees charged to the homeowner.
Click here to see a chart that shows the 10 reasons why a short sale is better than a foreclosure.
Call our toll free hotline to see if you qualify for a short sale. 800.975.4077
How long does the short sale process take?
A short sale can take 60 to 120 days or longer to complete depending on how many mortgages are on the home. This is very important. The process is complicated and takes a lot of time. So if you are in foreclosure, you should act quickly and find out as soon as possible if you qualify for a short sale. If you wait until just before eviction, no one can help you with a short sale. It is simply impossible. DO NOT WAIT.
What is a Short Sale?
A real estate “Short Sale” is where a bank (the mortgage lender) allows a homeowner to sell their home for less than what is owed on their mortgage, and the bank accepts that amount as full payoff and forgives the difference.
A bank may grant a short sale under the following conditions: the seller has a hardship which will prevent them from making their mortgage payments, and the seller owes more on the mortgage than the home is worth which makes it impossible for them to simply sell it and payoff the mortgage with the proceeds.
The bank needs to be convinced to do this by providing them proper documentation which is commonly called a short sale package. A real estate broker that is experienced in the short sale process will work with you to put this package together.
Short Sales are really a Win-Win-Win. The bank avoids having to go through the long, expensive foreclosure process, the homeowner gets to move on with their life and save what’s left of their credit, and the new buyers typically get a home that’s in “Move -In” condition at a substantial discount.