Why a Short Sale is Better than Foreclosure
Are you finding yourself (and your finances) in a tight spot? Step one: take a deep breath! You have options. No matter how dire your situation may be, it’s not the end of the world. In fact, with a few smart decisions, you may even be able to avoid bankruptcy and foreclosure.
Communication is key
If you are having trouble making payments on your house, you need to let your bank know. Set up a meeting and have an honest conversation–the odds are good that there will be potential remedies to explore before foreclosure is even on the table. In a best case scenario, your bank may be able to arrange a new payment plan, such as allowing you to make partial payments now and pay back the difference at the end of your loan period. If this is not an option, however, your bank may suggest that you explore a short sale.
How short sales work
In a short sale, you agree to sell your home for less than what you owe on it. This allows you to avoid foreclosure and bankruptcy. Depending on your negotiations with your bank, it will cancel out a large portion—and hopefully all—of the debt you owed on the house. It is based on the concept that experiencing a moderated loss is better than default–for both you and your bank! Your bank will likely be helpful during the process, as they stand to benefit from a short sale rather than a foreclosure just as much as you do; however, it is important to remember that time is still of the essence. If you are unable to find a buyer for the short sale, after a certain amount of time your bank may be forced to begin foreclosure procedures even as you continue trying to pull off a short sale.
Finding a buyer
The risk that the bank could go through with the foreclosure process anyway due to the lack of a buyer is enough to scare many people away from short sales. This is unfortunate because short selling offers a number of pros that, in many (if not most) cases outweigh the cons. Additionally, the threat of foreclosure can be avoided by seeking the assistance of a cash-only buyer.
Should I sell my home for cash?
Because short sales are so time sensitive, many sellers turn to cash-only buyers in order to avoid unnecessary delays. Cash sales are not dependent on financing approval, and thus go through much faster than “traditional” sales. Moreover, there are a number of respected real estate solutions companies that are always looking to purchase homes for cash—thus eliminating the uncertain wait for traditional buyers.
Additional benefits of cash-only buyers
The speed and ease of cash only home sales attracts a lot of sellers, but one other aspect that not everyone considers is the leverage that real estate solutions companies have with banks. This is particularly relevant to those looking to short sell their homes. Remember earlier in the article when discussed the terms of how short sales work? Ideally, a short sale cancels out all remaining debts between the borrower and the bank; however this isn’t always possible. When you have the leverage of a serious and established real estate company behind you, you can be certain you’re getting the best deal.
Learn More!
If you are considering a short sale, you owe it to yourself to contact Blue Marble Properties to learn more about your options.