Short sales can be the best option for sellers who are having financial difficulties. We know. We're short sale experts. Shown below is an overview of short sales for buyers and sellers. Make sure you take advantage of our expertise if you're considering a short sale. The process can be simple and may just save you time and money!
FOR SELLERS
If you are planning to sell your home because paying your mortgage is becoming a problem, there are a number of things you need to consider. First, you should contact your mortgage lender as soon as you anticipate a problem in paying your mortgage. You may be able to restructure your loan, allowing you to stay in your home.
If you decide to sell your home, there are two options for you: a short sale or foreclosure.
Short Sale – A short sale happens when a lender agrees to accept a sales price that is less than the amount owed. This is done in a situation where the equity in your home will not be enough to cover all the costs of the sale.
A short sale must be negotiated with the lender, assuming that the lender will consider the short sale approach. Get a Free Short Sale Guide to learn more about this option!
Foreclosure (including a Deed-In-Lieu of Foreclosure) – A foreclosure happens when a homeowner stops making their mortgage payments and the mortgage lender takes over ownership of the home.
As a homeowner, you may wonder whether letting your home go into foreclosure may be easier and wiser than going through a foreclosure. The most important thing to consider is how either of those options will impact you over the long-term.
From the standpoint of your credit rating, you’ll find that a Foreclosure will reduce your credit score by approximately 250-280 points. A short sale will be less damaging, reducing your credit score by approximately 80-100 points.
You also need to consider that the waiting period before you’ll be able to buy another home. For a foreclosure, you may need to wait approximately 36 months before a mortgage lender will offer you a reasonable interest rate. A short sale on your credit report means you will need to wait approximately 18 months for a good interest rate.
FOR BUYERS
Purchasing a home that is in foreclosure, or that can be purchased through a short sale, can provide the opportunity to acquire a home at less than market value. But, you need to choose carefully to make sure you’re getting a good deal on a good home.
Whether you’re buying or selling in the foreclosure/short sale environment, there is a lot you need to know to make sure you make the best decision based on your individual situation.
Contact us before you make a final decision. We’ll be glad to provide the market knowledge and in-depth understanding of your options that will ensure the most successful real estate transaction.
|