A short sale allows a homeowner to sell their home for less than what they owe the lender. Fortunately, there are few short sales right now due to a rapid rise in home values. However, with recent economic hardships, we may see more short sales in the near future.
Some homeowners are in a difficult situation right now. They owe more on their house than they can sell it for, and their home is at risk of foreclosure.
Foreclosures and bankruptcies may seem like an inevitability if you’re one of the people who are struggling financially. However, you have options if you are in the Columbus area. A short sale could be a win-win for you and the mortgage company.
How Does A Short Sale Work?
The short sale process allows you to sell your home even if you owe more than your house is worth. The sale process is relatively normal. Short-sale homes in Columbus, Ohio tend to sell just as fast or faster than non-short sales.
Talk with a local real estate expert that is well-versed in short sales to get more information for your specific situation. Unfortunately, most real estate agents don’t work with many short sales. They may not understand the process or what can go wrong. It’s important to make sure you’re working with someone knowledgeable about short sales to avoid making a difficult situation worse.
Why Do Lenders Agree To Short Sales?
Why would the lender agree to a short sale if they stand to lose money? It may seem too good to be true, but there is a reason why lenders agree to short sales: They don’t want to deal with the debt anymore. A short sale allows the lender to be paid most of the debt without the lengthy foreclosure process.
For example, if you owe $300,000 on a house, but it would only sell for $275,000, the lender would allow you to short sell the house and effectively ignore the difference. They realize that you likely won’t be able to pay back the debt, and decide some money back is better than nothing. Plus, it could be faster and cheaper for them than foreclosing on the home.
Who Should Do A Short Sale?
A short sale is not for everyone, as it can still result in some extra fees and potentially reflect poorly on one’s credit score. You should consider a short sale if the alternative is a foreclosure, and you owe more on your house than it is worth.
If you need to avoid foreclosure, it’s important to act fast, as it won’t take long for the foreclosure process to begin. If you are behind on your payments, start thinking about and planning for a short sale. If you have been served a default notice already, you will need to decide quickly whether or not to do a short sale.
Doing a short sale may also be an option if you need to sell super fast and cash out some equity without making repairs. If you need to sell quickly, reach out to us to find out your options. We can help you sell fast in the traditional way or even provide a fair cash offer allowing you to get out quickly and move on.
Work With A Short Sale Expert
Being in a tough spot financially can be extremely stressful, especially when it comes to something as important as your home. However, it is important to remember that you always have options and that things can get better.
If you are in the Columbus, OH area and considering the short sale process, contact us at 614-830-9767. Don’t hesitate! A foreclosure can happen before you know it, and your window to short sell is closed.