6 Benefits of Doing a Short Sale
Are you having trouble making your monthly mortgage payments and owe close to or more on your house than it’s worth? A short sale can be a great option for you! With a short sale, the lender agrees to accept less money for the house than what you owe. Banks are willing to do a short sale because they can usually sell the property for more through a short sale than at the foreclosure auction. But a short sale isn’t just a better option for the bank. It has many benefits for you, the homeowner, as well.
1) Get more time in the house, FREE.
The short sale process can take anywhere from 2-6 months to complete, or even longer in some cases, depending on your lender and how fast they work. During this time, you can stay in the house completely free of charge. If you’re in a tough financial situation, this can be a great time to get back on track and start saving money!
2) Prevent foreclosure and save your credit.
A short sale has much less of an impact on your credit score than a bankruptcy or foreclosure. Additionally, you can potentially qualify to buy a new house 1 year later, although 2 years is more typical. The wait time is usually 7 years or longer with a foreclosure. It is also much easier to rebuild your credit, buy a car, rent another home, and much more with a short sale than a foreclosure.
3) Wipe out unnecessary debt.
If your house sells for less than it’s worth with a foreclosure, the bank can come after you for the difference. With a short sale, the deficiency is almost always waived. You can walk away free and clear, assuming it’s a first lien only mortgage. Your mortgage will show a balance of $0, and the bank can’t seek any recourse. If there is a second lien, it will depend on your situation and the amount owed.
4) Get great service at no cost to you.
The short sale process is completely free to you. All of the costs are paid for by the bank, including commissions, home repairs, our fee, and any other fees. We don’t make money unless the short sale goes through, so we are more than motivated to put our very best foot forward to get the best outcome for you.
5) We do all the work.
Once you decide a short sale is right for you, we will take care of all the rest. You’ll have one of our agents representing you and serving as an intermediary between you and the bank, so you no longer have to worry about dealing with them. While there is no guarantee the bank will accept the short sale agreement, you can have peace of mind knowing that you are in good hands. We have a lot of experience with short sales and a proven track record of success.
6) Have the potential to receive some money.
You won’t receive any money as part of the short sale, but you may qualify for a government relocation program. The amount of proceeds you qualify for can vary in amount between $1,500-$3,000. VA loans can typically qualify for $1,500, and FHA loans can usually qualify for $3,000. Conventional liens, HUD liens, and other liens vary depending on a variety of factors. The bank will make the final determination. Restrictions apply.
Time is of the essence. The consequences of foreclosure are severe, and you should do everything in your power to avoid it. Most banks only allow a certain amount of time before the foreclosure date to enter into a short sale agreement. If you think a short sale could be a good option for you, please reach out to us as soon as possible. We will evaluate your situation, answer all your questions, and help you find the best solution.