There are many benefits of a shortsale. Many people don’t see the benefit. They don’t do anything to avoid
foreclosure and let their bank foreclose.
Benefits of a Short Sale:
1. A short sale often allows the
seller to walk away owing nothing. You
are often able to negotiate away all the debt. Banks know they will net more
money with a short sale versus foreclosure.
In fact, a recent study showed banks
would net 20% more money with a short sale versus foreclosure. Because of this,
most short sale banks completely forgive the debt.
Yes, they might be losing $100,000,
or more. However, they would rather cut their losses and let you go free.
2. Short Sale Sellers are eligible
to buy another home much faster.
For example, Fannie Mae recently released a guideline for sellers who short
sale.
If you short sale, then you are
eligible to buyer another home two years after the short sale.
3. A Short Sale preserves your
dignity. You won’t have a “Notice of
Foreclosure Sale” posted on your door while you still live in the neighborhood.
4. A Short Sale does less damage to
your credit. Your credit score typically drops
by 250 to 300 points on a foreclosure. With a short sale, your credit may only
drop by 50 points, provided you are current on all your obligations.
Cons of a Short Sale:
1. There is no guarantee your bank
will accept the short sale offer. However, banks are working very hard to
improve their processes. They want the short sale process to become easier to
work with.
2. The bank will want to see all
documentation on your income and assets.
3. Short Sales do not always go
fast. They can drag on for 3-6 months. However, you can still live in the home
for free during that time.
A short sale is a good option for
most homeowners. It allows you to get rid of the debt and move on with your
life. Many people rent another home for less than their mortgage payment.
In one example, a homeowner in
foreclosure found a larger home with a garage. It even had a fenced backyard
for their kid. Their mortgage payment was around $1,500.
They rented the nicer, bigger house
for $850 a month and saved $650 a month. Thinking about a short sale?
I can help you short sale your
property and get back on your feet. Send me an e-mail at tom.mack@exprealty.com.
I will contact you for a free consultation.
When we talk, I will explain how the
process works in detail and answer any questions you may have. Or, if you
prefer, you can call me at 407-359-2220
Discover how other sellers
successfully completed a short sale and request a free consultation by clicking here.
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