With recent economic hardships plaguing every walk of life, many homeowners are finding themselves in a tough position. They owe more on their house than they could sell it for, and their home is at risk of being foreclosed upon.

Foreclosures and bankruptcies are becoming more and more popular these days, as more people are forced into this difficult situation. However, there is another option. Short sales are a sort of win-win situation, which benefits the homeowner as well as the financial lender.

How Does It Work?

A short sale is a cost-free, fee-free way to sell your home before it becomes foreclosed upon. The process allows you to sell your home even if you owe more than your house would sell for. The sale process is relatively normal, and short sale homes tend to sell just as fast or even faster than non-short sales. Be sure to contact a real estate agent that is well-versed in short sales in order to get more information, as well as tips for your specific situation

Why Do Lenders Agree To This?

Right now, you may be asking yourself “What kind of lender would help me, even if they would lose money in the process?”. It all seems too good to be true, but there is a reason why lenders agree to short selling: They don’t want to deal with your debt anymore. A short sale is really the lender’s last chance to actually have the debt owed to them paid out, even if it isn’t all of it. 

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.

When Should I Do A Short Sale?

A short sale is not for everyone, as it can still result in some extra fees, as well as possibly reflect poorly on one’s credit score. You should only consider a short sale if the alternative is a foreclosure, and you owe more on your house than it is worth.

As well, be sure 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.

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 make the right decisions.

 

If you are in the Columbus, OH area and considering the short sale process, visit us here, or contact us at 614-845-0405. Don’t hesitate! As said above, a foreclosure can happen before you know it, and your window to short sell is closed.

 

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