The amount needed to pay off your existing loan is known as a short sale. While it isn’t the ideal situation for most homeowners, it can offer a better solution than foreclosure. Due to the housing crisis, many lenders are more lenient about accepting short sales than ever before. This option certainly isn’t for everyone; however there are times when it may be the best possible option. If you’re facing financial difficulty, here are ten reasons you may want to look into a short sale.
1.It Could Save Your Credit Rating – While a short sale will most likely have an adverse effect on your credit rating, it isn’t likely to be as damaging as going through the foreclosure process. Speaking to a trained professional who has extensive experience in short sales can help you determine if this is the right option for you.
2.To Avoid the Social Stigma of a Foreclosure – One of the most difficult parts of the foreclosure process for many families is the social stigma involved. A short sale can help to reduce some of this embarrassment for some homeowners.
3.Short Sales Can Decrease the Waiting Period Before Buying Again – A foreclosure will typically preclude you from buying again for up to 10 years; a short sale can, if handled properly, significantly reduce the amount of time you’ll have to wait before buying property again.
4.There Are Possible Tax Benefits – Homeowners who have had some or all of their mortgage debt forgiven may be eligible for special tax relief benefits.
5.Avoiding the Stressful Process of Foreclosure – Every aspect of a foreclosure is stressful and upsetting. Though a short sale is far from ideal, it’s an option that many troubled homeowners find the more tolerable option of the two.
6.Comparatively Low Cost Option – Short sales don’t require the improvements and upgrades that a homeowner would have to make in order to sell their home in a traditional market; when time is at a premium and money is scarce, it might be wise to attempt a short sale. Making a large investment in improvements for a home that is foreclosed on before it can be sold to a traditional buyer will only increase both your debt and stress level.
7.A Short Sale Can Speed Up the Process – The drawn-out process of foreclosure only adds to the stress of the situation; a short sale can take significantly less time and cause less heartache for those involved.
8.Maintaining Confidentiality – The legal requirements regarding notifications can make it almost impossible to maintain your confidentiality while suffering through a foreclosure. The short sale process can make keeping your financial woes under wraps a bit easier.
9.Keeping Your Home Absolutely is Not Feasible – Coming to the conclusion that you simply cannot afford to maintain your mortgage payments any longer is, without a doubt, one of a homeowner’s worst nightmares. However, once you’ve accepted that keeping your home is just not an option, you should start researching the possibility of a short sale.
10.Required relocation – If you are required to relocate for employment purposes or other unforeseeable reasons, choosing a short sale can get rid of the current mortgage payment much more quickly when the housing market in your area is in a slump. Maintaining two residences may simply not be feasible financially.