Stop Foreclosure: SELL YOUR HOME THROUGH A SHORT SALE

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If you owe more than your home is worth and don’t want to face foreclosure or declare bankruptcy, then a short sale of your house is the best option. Short sales are a way for homeowners to avoid foreclosure of their homes and still be able to pay off their loan by settling with the lender. The catch though is that in order to successfully conduct a short sale, the lender that is foreclosing has to agree to it; in essence agreeing to accept less money than it is owed on the loan secured by the house. Selling a home by a short sale is a legitimate method for stopping the foreclosure process, allowing the homeowner to get on with life without much damage to the credit record.

But short sales do affect credit scores but not as detrimental as bankruptcy or foreclosure. Bankruptcy remains on credit reports for ten years while short sales are reflected for seven years. Although if borrowers are able to get back on track financially they can apply for another mortgage loan within 2 years. Short sales are handled by each lender according to their established corporate policy. But borrowers should expect to provide a lot of financial documentations to prove that they’re financially insolvent. Because after all, if the bank is going to accept a loss on the property they will want the proof that the borrower doesn’t own other assets which could be used to satisfy the debt.

A great tip for locating a buyer for short sale real estate is to find private investors or investments groups. Short sale properties are attractive to investors because the properties are usually sold below market value. And selling the property to a real estate investor eliminates the need for a realtor and also improves the borrower’s chance of obtaining short sale approval. Both the bank and the borrower save time and money when selling to investors. Banks can expedite the transaction because there is no more need to locate a buyer and borrowers don’t have to spend countless hours worrying how they will find a buyer. The investors benefit as well because they purchase the property at a much-reduced price. Short sales offer a win-win to all parties concerned if property constructed.