Is a Short Sale Your Best Alternative to a Foreclosure?
A short sale occurs when a property is sold at a loss because the mortgage lender agrees to accept an offer that is less than what is owed on the property. Once the lender receives the agreed amount the lender will release the lien on the property. A short sale is typically viewed more positive that a foreclosure on a credit report and allows the seller to regain home ownership in the future. Not all lenders will accept short sales and the terms of which they will accept may vary from lender to lender. Before agreeing to a short sale the seller should understand the terms of their lender.
Why Do Lenders Accept Short Sales?
Common reasons lenders agree to a short sale:
- New housing bill provides tremendous financial incentives to the lenders who approve short sales to distressed home owners
- The home owners financial position has changed and they can no longer afford the property
- The mortgage is past due
- New construction in a particular area has hurt the value of existing homes
- The local real estate market has depreciated in value
- They want to avoid the cost and time required to foreclose
- The condition of the property has deteriorated
- Reduces non-performing asset inventory
It is never too late for help, so don’t delay act today!
Click on the "Get a FREE No Obligation Short Sale Pre Qualification" tab now to see if your property qualifies for a short sale.