A short sale is a good option for many property owners who have found that they can no longer afford their home. A short sale — so named because it entails selling the real estate for a price that comes up short on the total balance owed to the lender(s) — is a good alternative to foreclosure. In many cases, a short sale also allows you to keep your credit score more or less intact, so there’s not the dramatically adverse impact that you would see with a foreclosure.
There are many circumstances and situations that may qualify you for a short sale, including:
- a long-term hardship due to a job loss, death in the family or illness;
- you’re behind on your mortgage payments or in a situation where you are imminently going to be unable to pay;
- you can no longer afford to live in your home;
- you have been unable to sell your home at a price that will cover the balance owed on your home loan;
- you are unable or ineligible to refinance your mortgage or undergo a loan modification.
In some cases, the property owner may have to make a financial contribution to make up some of the difference. It depends on a number of factors, such as how much of the loan balance is principal and how much is accounted for by interest, fees and penalties.
Notably, new laws in many areas allow home owners to start short sale proceedings before they fall behind on their mortgage payments. It used to be that homeowners had to have missed payments in order to qualify for a short sale, but today, property owners who are in imminent danger of missing payments and will no longer be able to afford the property can often qualify for a short sale. This is ideal as it enables the property owner to get out from under the burden of the property without the devastating impact on their credit history.
If you’re considering a short sale, contact a short sale expert like Kristine Zelazo, better known as the Short Sale Gal! She can walk you through the process of selling your home in a fast, expedient manner. She’s also an investor, so she may even be able to purchase your home. Call Kristine Zelazo, the Short Sale Gal, today at 800.664.0616.