How Can a Short Sale Benefit the Seller?
Written by Administrator on January 2nd, 2011How Can a Short Sale Benefit the Seller?
How Can A Short Sale Benefit The Seller?
How would it feel to lose your dream home for no fault of your own? Financial problems due to loss of job, health problems, divorce, and taking care of family members all characterize each of our lives and none of us really know what will affect us when. We cherish our dreams and make enormous efforts towards realizing them, some of which come true and some do not and some we miss reaching almost the threshold of acquiring. A breathing reality that is so common in all of our lives is the threat of facing foreclosure and eventually losing a home to an unknown agency. Mortgages do have their benefits, but the slightest misstep on your part can transform mortgages into terrible nightmares.
There are several twists and turns that characterize our careers. Moreover, we have regular needs to meet in terms of ourselves as well as our loved ones, which is why the added worry that comes with losing your property due to the inability to repay your mortgage is increased tenfold. However, your mortgage company is, after all, a business entity and does not want to empathize with you at any given instance. Their motive is profit, not compassion. What is the result? Your property, your own dream, and your way of life are under threats of property foreclosure or forfeiture by the lender company. Maybe a loan modification is a worth trying first to see if that will alleviate the financial burden of the mortgage to a more manageable payment.
However, you also have the option to short sale your home! In any case, it is infinitely better than sitting idly and letting the bank foreclose on your home. It may take a couple months or more to actually be completed and provide the relief needed, so hang in there during the process and know the end is near.
A short sale provides relief by your home to someone at a price lower than the mortgage balance (or, less than the loan balance). Keep in mind that there will be negative impacts to your credit report because of the short sale. Also, remember the sooner you are out of the home the faster you can start to rebuild your credit.
So how do you profit from such a transaction as a seller? You are the one who wins in the long run by being able to avoid foreclosure of your property by selling it off before the actual real estate foreclosure auction takes place. This benefit would not have been feasible if the property was foreclosed on. Not only does this save you the pressure of dealing with the foreclosure procedure, but it also can be less damaging to your credit report.
Your mortgage company would prefer to follow through with a short sale then have to initiate and handle a foreclosure. It is estimated that a foreclosure can cost a bank up to ,000. Sometimes the homeowner can find ways to postpone a foreclosure and thus stay in the home rent free for many months and sometimes up to year, which in turns costs the bank even more money. In addition, many homes foreclosed on are severally damaged by the owner and require significant money to make them livable.
I have an extensive background in Residential and Commercial Lending, and have been a top producer. I handle refinancing, purchase loans, conventional, jumbo, FHA, VA, and USDA in many states.
With the market changes, I began receiving requests for loan modifications for a variety of reasons, job loss, job change, medical conditions, etc. So, I invested time in finding the right help for these requests. I did and continue to research and add Attorneys that have the following qualifications:
* Extensive experience in the loan modification business.
* Have an excellent reputation and are licensed.
* Provided up front prequalifications for free so that my client new early on if there was a chance for a loan modification and also if it made sense. Not all loan modifications that are negotiated make sense and really help clients, so an affordable payment is important!
* Had good communication processes so that clients are updated every other week. I was concerned that my clients would feel alone during the process as it can be lengthy, up to 90 days and sometimes longer. So, communication is the key and I believe one of the most challenging aspects of modifications.
* Provide help in most states.
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Tags: Benefit, clients, during, loan modifications, months, Sale, Seller, sense, Short, short sale
