When is Short Sale the Right Choice?
A homeowner can try to sell his home short when he is no longer able to make mortgage payments in time, and is about to face foreclosure. If the homeowner’s bank accepts a short sale, he agrees to settle things with a discounted payoff that is actually less that the borrower owes. By agreeing to a short sale, the borrower can avoid a foreclosure than can leave a devastating mark on his credit score. If you are considering selling your home short, make sure you hire a short sale realtor to assist you. Maryland Short Sale Company, LLC has perfected the short sale process in Maryland. Learn why is crucial to hire a professional to assist you.
How Can a Short Sale Realtor Help You?
As we mentioned, if you are facing foreclosure and you manage to sell your home short, you will maintain a better level of credit score. However, you cannot simply make a decision to sell your home short. Certain conditions must be met in order to qualify for this transaction. Certain paperwork must be filled. Also, the provision of economic difficulties as well as evidence of zero equity in the property must be submitted to the mortgage lender. Short sale is an extremely complex transaction, therefore it is crucial to have an experienced professional by your side to navigate you through the process and ensure the transaction is successful.
What are My Odds of Successful Closing?
If you are facing foreclosure, you will have a permanent mark on your record that may prevent you from getting a loan and never again becoming a homeowner. Also, without a short sale, you may be chased for deficiency and entirely go bankrupt. This should be a clear motivation for a short sale. As a seller in this situation, you will not only avoid having a foreclosure on your record, but you also won’t be chased for a deficiency. Your chances of succeeding are much greater you have hired a short sale agent with great negotiation skills to help you. Apart from hiring a short sale realtor, you will also need assistance form an attorney.
The transaction can be successfully closed in 99% of cases if you have an expert by your side to assist you. Many banks seriously consider accepting a short sale because this way they will get more money than in case of a foreclosure. So, basically this is a win-win situation for both sides. Depending whether you live in judicial or non-judicial foreclosure state, the process of foreclosing can take from one to three years. As the process drags along, the bank receives nothing. Apart from this, the bank has to take care of the property and has additional costs. Due to this, many banks consider a short sale quite beneficial for them. Much like the homeowner, the bank is also simply looking for the best way to limit their losses.
How Much It Will Cost Me?
Short sale transaction and the closing costs are not paid by the borrower. If the bank agrees to short sale, they agree to the net amount of the sale, and they are the ones paying your closing costs. If you facing foreclosure, short sale may be the only option you have to avoid it.