If You May Be Facing Foreclosure...a Short Sale Could Be Your Best Option
Avoiding Mortgage Foreclosure
For some people struggling with payments on their homes, a short sale option is worth exploring. A short sale involves selling your home for less than what you owe as a means to avoid mortgage foreclosure. Today, many lenders are considering a short sale as a viable option, because taking your property back through the foreclosure process is an expense for them.
How to Avoid Foreclosure
Many homeowners having financial difficulties are considering doing a short sale a little too late. The time to explore doing a short sale is before you start missing house payments or soon thereafter. The reason is because the whole process for doing a short sale is time consuming. You need time to market and find a buyer, time to work with the bank(s) in approving the short purchase price and finally, time for the buyers to process their new mortgage to purchase your home and close. Time is critical to the success of short selling your home.
How to Do a Short Sale
If you’re considering a home short sale, you need an expert in local real estate and one who is experienced with short sales. Although it is true that you can accept an offer for less than your mortgage and present it to your lender yourself, the likelihood of success is slim to none. Having a REALTOR® who is experienced and knowledgeable in short sales helps considerably – one who knows the process well, one who has developed relationships with many of these banks and one that know how and when to communicate with them. Because the banks are overwhelmed with these short sales, having an experienced short sale agent who will file all the paperwork in a timely fashion and follow up with your lender(s) daily is critical. Remember, if you’re trying to avoid mortgage foreclosure, time is of the essence!!!
How Does a Short Sale Affect Your Credit?
It is understood that in a foreclosure you can expect your credit score to drop an average of 200-300 points. A short sale will reduce your credit score drop to 150 points. However, some homeowners have only seen their score drop around 100 points. It’s important to note that every situation is different.
Perhaps the best part of all is that with a short sale, rather than being on your credit report for ten years, it may only appears for 24 to 36 months, and possibly less. It should also be noted that with a short sale, you might find that attaining reasonable credit happens much quicker than in a foreclosure.
Like many Americans trying to avoid mortgage foreclosure, you’re probably feeling anxious and stressed. You may feel there are no other options left to avoid mortgage foreclosure.
For Up-To-Date Short Sale Information, Processes and Procedures:
Contact Colorado Springs Realtor® Marie Sweetland today, to discuss your situation. Marie will explain the short sale process and answer your questions regarding short sales and how they work. Marie will work with you to see if a home short sale may be an option for you.