If the current value of your house is less than what you owe on your current mortgage, you may qualify for a legal, lender approved solution known as a Short Sale. A Short Sale can be accomplished by bargaining with your bank to agree to a sale of your home to a third party homebuyer for less than what you presently owe on your mortgage balance.
The short sale of real estate is not a dubious custom in today’s softening real estate market, it may be a requirement. The short sale deal is a legal and much more favorable alternative to foreclosure or even bankruptcy. Lending institutions are motivated to accept short sale offers for a number of good reasons.
The short sale of your house can result in a win-win-win situation for all parties involved:
WIN #1: You win by getting out of a financial predicament. Your home is saved from foreclosure, thus helping you to save your credit rating. Letting your home to go into foreclosure may unfavorably affect your credit for up to 7 years.
WIN #2: The lending institution wins by preventing timely and costly foreclosure proceedings which could become an even more costly expense of possession of the real estate by the lending institution.
WIN #3: The buyer of your home wins by getting a solid home at a good market value.
Author: S. A. JohnsonThis author has published 7 articles so far.