A Short Sale Today is a Better Option Tomorrow
Are you facing trouble paying off your mortgage? Fret no more. A short sale is the answer to your problem. If this is the first time you’ve heard this term, it’s about time that you find out what it is. After all, the term short sale has now become a very common phrase in the English lexicon.
So what is a short sale? It is the sale of a home in which the proceeds accumulated are less than the actual amount owed on the mortgage of the property. Another way to define it is by saying that it is a sale in which the lender agrees to accept less than the balance owed on the mortgage in order to avoid foreclosure.
Now banks have been practicing short sale for years, but it has only recently become a part of the public practice. This is because of the current state of the economy and the housing market.So why is short sale a better option for you? What would you obtain out of it? The following lines cover the answers of these questions and more.
If you think you will be able to foreclose your property and walk away with a clean slate and be done with the situation, then you are sadly mistaken. The reality is that you can’t possibly be farther away from the truth. In most situations, when an individual forecloses their property, they most often walk away with a tax liability and an outstanding due to the bank as well. However, you can alleviate your debt to the bank through a short sale. Sounds like a dream, doesn’t it?
You may have heard that if you are denied a loan modification, you will be denied a short sale. First of all, the proceedings of a loan modification and a short sale are handled by two separate departments. These two processes have nothing in common whatsoever. If your loan modification is denied, it does not necessarily mean that your short sale would be denied too. In fact, in most cases it is easier to get a short sale approved faster than a loan modification because the latter are not usually successful in reducing the loans low enough according to the consumer’s income.
This is undoubtedly the best feature of a short sale and it’s guaranteed to make you swoon with delight. Besides, a short sale does not cost you any money. On the contrary, you may be able to get anything between $3000 and $30,000 for participating in a short sale. In addition, in most cases, a short sale places you in a better financial position than before the sale.
These aside, a short sale would also help you preserve your dignity and save you from suffering the social stigma caused by a foreclosure. Moreover, it would also make you eligible to purchase another property in the space of 12 to 24 months.
However, short sales aren’t easy to handle. This is why you need to get a specialized realtor to help you with this. So, don’t hesitate to hire a professional to get your short sale done quickly and effectively.