Have you found yourself in a severe financial bind, unable to pay your mortgage? You’re not alone. A study completed by Harvard has shown that 38 million households can’t afford their homes. Going through a foreclosure isn’t your only option, however. A short sale can benefit both you and your lender while helping you get back on your feet faster.
What Is a Short Sale?
A short sale occurs when real estate property is sold for less than the whole amount owed on the mortgage. Short sales are typically considered before foreclosure when a homeowner is behind on mortgage payments. A short sale can also occur when the housing market decreases, leaving behind a house that is now worth less than the mortgage balance.
The Benefits of a Short Sale for Your Property
Although a short sale can take some time—up to a year in some cases—there are some benefits to pursuing it, for both the homeowner and the original lender.
- Homeowners can avoid foreclosure: Short sales are voluntary and don’t have as many consequences as forced foreclosure. Foreclosures can keep homeowners from securing another mortgage for up to seven years and are damaging to their credit.
- Lenders can get back what they gave: During a short sale process, lenders can receive most of the original loan through the sale of the property. Other options such as foreclosure require a more expensive process.
- Financial flexibility: You could benefit from greater financial flexibility with a short sale. Often, homeowners are not required to make mortgage payments while undergoing the short sale process, benefiting those who are under major financial stress.
- Exit the property with dignity: As a homeowner, you’ll benefit from knowing you sold your home, instead of having it taken from you forcefully. You’ll also keep foreclosure from being a part of your credit report.
Is a Short Sale the Right Choice for You?
For a successful short sale, it’s important to hire someone to help you navigate the intricacies of the process. If you’re considering selling your home as a short sale, consider speaking to a professional short sale attorney. To learn more about the short sale process, send us a message.