Have you fallen behind on mortgage payments? Can you no longer afford your mortgage payments?
Are you considering all the options you have and you’re looking at bankruptcy but you’re just too scared to declare that knowing you’ll need to file it? Or do you just think you can do one last ditch effort and sell your house yourself?
You may be considering the option of a short sale and are wondering what a short sale in real estate is. There are a lot of good ideas for a short sale and why it’s often the best option for those looking to get out of a financially burdensome mortgage – but how does it work?
Read on for everything you need to know about a short sale in real estate.
What Is A Short Sale?
A short sale occurs when a homeowner sells their home for less than the amount they owe on their mortgage. This can happen when the market value of the home has decreased or when the homeowner is facing financial difficulties and can no longer afford their mortgage payment.
Short sales can be beneficial for both the homeowner and the bank because it allows the homeowner to avoid foreclosure and the negative impact that has on their credit, and it allows the bank to recoup some of the money it is owed.
Why Short Sale?
The most common reason is that the seller owes more on the mortgage than the property is worth. This is often due to the housing market crashing and the property value dropping. If the seller can’t find a buyer who is willing to pay the full mortgage balance, then a short sale may be the best option.
There can be drawbacks to doing a short sale. It will damage the seller’s credit score. Another is that the lender may not agree to a short sale. In that case, the only way to sell the property would be through a traditional sale.
If you want to get into a short sale, you may want to consider Integrity Home Buyers Colorado.
How Does A Short Sale Work?
The process of a short sale can vary depending on the lender. The borrower will contact the lender and request a short sale. The lender will then order a broker’s price opinion, which is an estimate of the current value of the property.
If the property is worth less than the amount owed, the lender will then negotiate with the borrower to try and reach an agreement. If an agreement is reached, the borrower will list the property for sale at the agreed-upon price and once it is sold, the proceeds will go to the lender.
How Long Does A Short Sale Take?
While the average short sale takes around four months to complete, this figure can be deceiving. The real answer to the question of how long a short sale takes is that it depends on several factors.
The most important factor is the cooperation of the lender. Some lenders are very slow in responding to short sale offers, while others are much quicker.
Understanding Short Sale In Real Estate
If you are interested in pursuing a short sale on your home, it is important to consult with a real estate agent to see if it is the right decision for you.
A short sale can be a complicated and time-consuming process, but it can be a great way to avoid foreclosure and get out from under an unaffordable mortgage.
To learn more about a short sale in real estate, visit our blog post.
