There are numerous home owners that are in adversity that are stopping foreclosures using a procedure known as a short sale. When a homeowner is dealing with a hardship and their house is being foreclosed on, a short sale can offer the means in which the homeowner may prevent a foreclosure. It is a good alternative that a homeowner facing foreclosure should speak with their lender about.
What is a Short Sale?
A short sales is a procedure in which the lender agrees to permit a house to be marketed for less than the property owner owes on the house. By selling the house for a lower price it permits the home to be sold speedily and there by stopping the foreclosure.
It is important to remember that not every home is eligible for a short sale and not every lender will accept a short sale offer. However, that being said often it is in the loan providers best interest to accept the short sale offer.
Short Sale Advantages:
Although the proceeds of a short sale does not line the property owners pocket book, there are some advantages. The benefits of short sale may include:
- A short sale is definately not as big of mark on your credit rating.
- Enables you to purchase a home oftentimes after 2 years
Short Sale Downfalls:
- Some short sales have no strings attached, however some have additional terms in which the homeowner has to meet.
- Some lenders make the property owner make up the difference between what they owe and the selling price.
Stopping foreclosures is something that lots of homeowners are dealing with in this current market. Using a short sale to provide a way out is a viable solution if the homeowner has a true hardship. Picking up the phone and contacting your lender regarding this alternative could be well worth the call.
Comments on this entry are closed.