During our lifetime, we face many financial difficulties. Under financial distress, many homeowners look to sell their assets to avert bankruptcy and defaults in order to pay off loans. The sale of a real estate asset, such as a house is one such option. However, in times of distress, many homeowners are required to sell their house for a lower amount than the actual price of the house or their mortgage. It is called short sale and comes with its very own advantages and disadvantages.
Here are some common advantages of choosing a short sale over a foreclosure.
Helps Maintain the Credit Score
A short sale, unlike a foreclosure, can help maintain – and at times, enhance the home seller’s credit score. Since foreclosure is a sign of default, a short sale can allow for a good score to be used to buy a different house, and usually a mortgage lender or bank closes the book on the matter, rather than seek deficiency judgments and payments.
Short Sales are like Traditional Sales
Unlike a foreclosure where banks and mortgage lenders have control over the sale and negotiations, a short sale provides the homeowner with the power to negotiate and accept an offer that suits them. Homeowners can consult an expert real estate attorney to help negotiate and communicate with banks and real estate agents, while trying to avoid a foreclosure where possible.
Reduces the Likelihood of Scam
There have been various foreclosure scams, which have resulted in homeowners feeling depressed after losing their fair share of the sale. A short sale is the same as a traditional sale, which allows working with professional real estate agents. it also provides for the right price for the asset when available.
Creates peace of Mind for the Seller
Although a short sale is not risk-free and requires constant working and negotiations, it reduces the risk of legal action or lengthy foreclosure processes. It can leave homeowners in a positive position while using the money from the sale of their house to either buy a new house that suits their budget or seek a new mortgage, which can lead to new and bright beginnings for the homeowners.
If you want to find out more about a short sale or wish to schedule a free consultation session with an experienced family and real estate planning lawyer, we suggest you contact Fitzgerald Law Firm by calling at (630) 946-6060.