Avoid foreclosure by using a short sale

Posted by admin in For Sellers, Seller Tips on 07 13th, 2009 | no responses

If you are a homeowner who can’t afford your mortgage payments and you owe more than your house is worth, you may be able to sell it for less than you owe on the mortgage.

Those who cannot afford their mortgage payments there is a solution you might want to consider. Most homeowners look at a foreclosure as the main option when payment come to a halt, however, a short sale may be an alternative if your looking to work around a foreclosure.

What is a short sale? in real estate terms a short sale is a sale of a house that is less than what the homeowner stills owes on the mortgage. If your lender is willing to accept a short sale then the rest of the homeowner’s mortgage or debt is usually exhausted.

Why would your lender accept a short sale? They essentially take a small loss and avoid long and costly foreclosure procedures. Lenders may not want to take the full mortgage under their wings because they see the short sale as a better alternative.

The advantages of a short sale can be more lucrative for the seller, buyer, and lender:

The seller moves away from its mortgage liability without facing bankruptcy.

The buyer gets the home at a discounted price.

The lenders accepts a minimal loss without going through the lengthy process of a foreclosure.

In this case, we can assume that this is a win win situation for all parties and more importantly the lender avoids further complications down the road. The lender avoids picking up on the mortgage payments or the rigorous foreclosure process. The lender also avoids having to put the property back into the market which is also costly.

Please call our offices to speak with an agent about our short sale services.