Date Posted: 2012-05-16 03:35:44
Site Posted: Myproperty.ph
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In a previous article about preventing a home foreclosure, one of the tips that were suggested was a short sale. A short sale is basically a property that is put up as a house for sale to help pay off the remaining mortgage of the said property. Although a short sale can also damage one’s credit record, it won’t be as drastic as what a foreclosure can cause, which makes it a better choice.
There are other benefits to having a short sale instead of succumbing to foreclosure. With a short sale, you get to leave your house with dignity, which can get sacrificed when a person goes through a foreclosure or files for bankruptcy. If neighbors ask why you are selling quickly, you can just tell them that you need to move right away. Also, a short sale shows the lender that you have integrity because you are doing what you can to keep your end of the deal.
There are several factors that you need to keep in mind if you want to hold a short sale for your property:
a.) You should be experiencing financial difficulties
b.) The home should be underwater (your mortgage balance is greater than your home’s worth)
c.) The bank who provided your loan should be open to a short sale
d.) You should be able to find a buyer who is interested in buying your property.
Keep in mind, though, that not all underwater homes qualify for a short sale. If all of these apply to you, save for the financial hardship, your option would be doing a strategic short sale (which will be discussed in another article).
With a short sale, you’ll need all the help you can get to ensure that you can find a buyer as fast as possible, and to be able to sell the home for the amount agreed upon by you and your bank. This is what makes hiring a real estate important; they can help you accomplish these and much more. Aside from these benefits, a real estate agent can also
· help you price your home that will be neither too high that it won’t attract buyers, nor too low that the bank won’t agree to it
· handle the paperwork required to put together the short sale package to be sent to the bank
· convince the bank to agree to the short sale you are proposing
· market the home and filter out bad (lowball) offers and present you with the good ones
It’s necessary to remember that even if you house is underwater, there are things that you can do to prevent foreclosure, and a short sale is one of them. If you are experiencing financial difficulties and finding it hard to keep up with your mortgage payments, hire a real estate agent and find out if you qualify for a short sale.
Jillian Cariola, Writer
(cover image by xymonau)
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