Short Sales: How They Can Be Beneficial in a Short Time Frame
There are numerous reasons why a homeowner might consider a short sale. For most, it’s a path that diverges away from a possible foreclosure. The majority of homeowners would agree that avoiding a foreclosure is by far the best route to take in any situation. The obvious, and arguably mutually beneficial, alternative is selling a home via short sale.
What is a short sale?
Short selling a home refers to a situation in which the homeowner is typically unable to make the mortgage payments set forth by the lender for a variety of reasons. In some cases, the homeowner is unable to make payments due to a divorce or substantial loss of income. In other cases, it could be that the house (and therefore the mortgage) was bequeathed to them and the homeowner is unable to uphold the financial obligations. The lender might consider a short sale even if the homeowner is not delinquent on their payments as well, particularly if the market value of the home drops significantly. In these situations, a homeowner and lender might agree to short sale solutions and selling a home as is.
What are some benefits to short selling?
The most apparent benefit to the selling party and lender is avoiding foreclosure. The lender won’t want to take a complete loss on the home, and the seller will want to avoid any stains on their credit history.
Short sales can also be beneficial in tight financial situations. If you’ve ever wondered “how to sell my house for cash,” then a short sale might be your answer. In many cases, a real estate investor will purchase your home via short sale and give you the benefit of a quick sale. Retrospectively, this can also be the better option rather than foreclosure. Foreclosures usually cost the homeowner an average of $7,500 in legal expenses. With a short sale and a “sell my house for cash” situation, a homeowner can avoid those costs.
There were 5.51 existing home sales in 2017, according to the National Association of Realtors. If you’re facing foreclosure, then consider making your home a sale statistic in 2018 with a short sale.
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