The Benefits of a Short Sale in Modesto
The crash of the real estate market and the economic downturn combined to pitch a number of owners in distress of losing their homes. However, the process of foreclosure can be a very lengthy, stressful and extremely damaging to the homeowner’s assets, savings and credit. If you were asked to go through the same, there’s a miraculously easy escape from the hassle of this process: arranging a shortsale. Not only does this procedure take comparatively lesser, the Benefits of a Short Sale in Modesto is also less damaging than a foreclosure.
If this is the first time you’ve heard about short sales, you need to understand that it is a transaction in which the lender allows the borrower to sell the house for less than the amount of mortgage owed. All the borrower has to do is find an efficient agent and put the house for sale on the market at a sizeable discount. Once the property is sold, the lender gets the amount the homeowner owes. As a result, the lender saves any expenses and prevents the pains associated with a foreclosure suit.
Now all of that may seem attractive to numerous people, but what about the homeowner giving up their property? What do they get?
To answer that question, homeowners benefit immensely from choosing short sales. Here are Benefits of a Short Sale in Modesto:
- You won’t need to make any mortgage payments unless you voluntarily choose to make them.
- You will get the chance to meet the new owners of your former home.
- You will be eligible to purchase another property immediately if your credit report does not display a 60-day plus late pay.
- A short sale protects credit. If you manage to short sell your home before it goes into foreclosure, your credit as a homeowner takes less of a hit. Looking at it from a lender’s perspective, it too is definitely better to recover a segment of the mortgage loan rather than face a total loss. Therefore, in lieu of a foreclosure, a lender preferably opts for a short sale as this allows both the homeowner as well as the bank to end up in a better financial position.
- The average legal cost of a foreclosure, including any additional costs of a lengthy foreclosure process, can turn out to be the tip of a huge iceberg of financial burden to the homeowner. However, a short sale can drastically reduce the financial burden of the homeowner. After all, it can decrease the amount the lender or the bank may try to recover from the homeowner.
So, if you’re ever faced with a foreclosure, make sure to choose a short sale since it’s more homeowner and lender-friendly. Also, get a professional real estate agent to handle this for you since you may lack the experience required and don’t have the time to gain it.
For assistance on your short sale, contact Eric or Jay with the Salonga Brothers – Your Key to the Central Valley.