You may be able to stop a foreclosure by selling through a short sale with the bank’s permission before the foreclosure process begin s. A pre-foreclosure sale, also known as a short sale, allows homeowners to sell their home at current market value and use that money to satisfy their mortgage.
The fear of losing your home makes this a stressful time when you are on the cusp of losing your home. A looming foreclosure is scary and, if you do end up having the bank repossess your home, it can leave a black mark on your credit score that will affect your financial status for years to come. A short sale can be a viable option for someone worried about a potential foreclosure. It will affect your credit but, because you’re making an effort to sell the home and pay back some of what you owe, it won’t damage your credit score as badly as a foreclosure would. You may lose your home, but you will have a better financial future with a short sale.
Some sellers immediately panic if they experience financial hardship and must sell their house. They may decide to put their home up as a short sale, get a buyer, and attempt to have the lender approve a short sale, but beware! A lender will not approve a short sale unless the seller missed several payments, and the lender has officially issued a default notice. As the seller, experiencing financial distress is a must for a short sale to become a viable option.
Keep in mind that a short sale is fraught with complications and unexpected problems. Ultimately, the decision is up to the bank and lender’s bottom line. If there is more money in the foreclosure and reselling the home, a short sale is out of the question to consider. It comes down to whatever is best for the lender’s bottom line.
The only way to go through a short sale is to work with a real estate agent who has successfully handled short sales before. Don’t go with an inexperienced real estate agent in this situation. The person who knows and understands what goes into a short sale is invaluable every step of the way.
The longer your home is on the market, the better. First, you have more time to price it at a higher amount, and the longer it can stay there, hopefully attracting a potential buyer. In all actuality, if you’re seeking a short sale, the price will have to be dropped multiple times to attract a buyer to the property. The longer it stays on the market without a potential buyer, the more you show the bank that you need to have a short sale on the property.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast.
Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577.