What A Short Sale Means For Your Credit Score And Your Home

Yes, in most instances, you can avoid foreclosure by selling a house early. Your decisions to sell will be based on several factors, which include how far behind you are in payments, whether the foreclosure process is already started, how much time you still have left, and others. Of course, there are many more factors that may affect the decision.

Foreclosure can be a complicated financial ordeal for a homeowner. In fact, the stress and uncertainty it causes are enough to drive anyone crazy! A short sale can be a great solution for homeowners who do not want to lose their home but do not want to wait for months or even years to return the full amount of their mortgage. Unfortunately, many people make the mistake of thinking that a short sale is somehow a worse situation than the foreclosure.

One of the main reasons why a foreclosure is avoided is because a foreclosure requires a court order. A foreclosure requires a homeowner to go before the judge and prove that they are in default of the mortgage contract. The judge then decides what course of action will be taken. In most states, the court system can declare a homeowner to be in default based on the deficiency of payments or the homeowner’s failure to pay their past-due mortgage payments.

However, a short sale does not require a court order. Instead, it is usually determined by the bank that they are willing to negotiate a payoff amount with the homeowner. The bank will usually require a $200 discount from the amount owed on the mortgage. A short sale is not a final solution to a mortgage issue. You will still owe the mortgage amount and the lender can still pursue you in court.

Another thing to consider is whether or not the homeowner must sell the house. In a short sale, the homeowner must first find a buyer. The mortgage lender will stop any foreclosure proceedings by sending the notice of default to the mortgage company. Once the notice of default has been received, the lender will ask for permission from the homeowner to enter into negotiations with the buyer. The homeowner must enter into a foreclosure agreement with the buyer in order to complete the transaction.

Homeowners who have decided to try and avoid foreclosure through a short sale often feel very confident that they will be able to make good on their mortgage payments. They may even think that they have no other choice. Unfortunately, many homeowners who take this approach do so at the expense of their credit and their home investment. It is important to know what you stand to lose if you choose to foreclose without having gone through the proper foreclosure options.

A short sale means that the homeowner has to leave their house in order to get the best deal possible on the property. This means that the homeowner is essentially renting the house from the lender in exchange for lower monthly payments. Because the homeowner has to leave the home in order to get better terms, the lender is not obligated to accept this arrangement, meaning the homeowner is risking losing their credit and their ability to purchase another home in the future.

Foreclosure is not something that anyone wants to experience, yet millions of homeowners will lose their homes during the course of this year. If you are a homeowner who hopes to avoid foreclosure, you should first assess your situation and your own personal finances. Next, talk with a foreclosure professional Realtor who can help you find affordable places to stay while you work out your financial problems. In the end, it is up to you to decide how you will best move forward. 

This entry was posted in Realtors. Bookmark the permalink.