It’s a sad fact, but many Americans lose their homes to foreclosure every year. Some lenders aren’t always diligent enough in checking a person’s ability to make repayments, and others don’t really care anyway. And of course there are situations where a change in circumstances happens, leading to the homeowners being unable to meet their mortgage obligations.
If the market value of your house is less than what you owe on your current mortgage, you may qualify for a legal, lender endorsed solution known as a Short Sale. A Short Sale can be realized by bargaining with your bank to accept a sale of your property to a third party purchaser for less than what you presently owe on your mortgage balance.
The short sale of real estate is not a questionable practice in today’s softening real estate market, it may be a requirement. The short sale deal is a legal and much more beneficial alternative to foreclosure or even bankruptcy. Banks are motivated to accept short sale offers for a variety 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 avoiding timely and expensive foreclosure proceedings which could lead to an even more costly expense of possession of the real estate by the bank.
WIN #3: The homebuyer 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.