Date Posted: 2012-05-20 23:59:35
Site Posted: Myproperty.ph
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When a homeowner feels that his home is nearing foreclosure because he can no longer pay for his mortgage due to financial hardship, one of the options that he has is a short sale. But what if you just want to sell your home because its value has fallen and you seem to owe more that it is worth? In this case, you might qualify for a strategic short sale.
In a strategic short sale, the homeowner puts up his house for sale because the mortgage he owes is now bigger than the present value of the home. What makes this different from a regular short sale is that you don’t have to be experiencing a financial hardship, such as unemployment, divorce or a death in the family, to do a strategic short sale. During this circumstance, investors would no longer see the point of making continuous payments, so selling would be a strategic business decision.
One of the benefits of a strategic short sale is just like a regular short sale, its negative impact on your record is a lot less than the effect of a foreclosure. In addition, lenders very rarely say no to a strategic short sale because they know that the homeowner has a good credit standing. By selling your home, you can also put the money you have that would have gone to mortgage payments towards a worthier investment.
Just like any business decision, a strategic short sale has its disadvantages. Before approving a strategic short sale, the lender might ask you for a contribution, especially if you can afford it. This move can also affect your credit score as it will reflect on your record that you chose to sell your house for less that the balance that you owe.
If you think that a strategic short sale would be the best move for you, it would be helpful for you to hire a real estate agent that specializes in short sales. They can help you talk to your lender to be approved for a short sale, and they can also help sell your property right away by utilizing all possible marketing approaches.
Jillian Cariola, Writer
(cover image by brainloc)
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