Nobody wants to think about it when they are buying a home, but there could come a time when they are not able to make the scheduled monthly payment. If this happens, the lender will begin to consider their options, which often leads to foreclosure.
As a homeowner in financial trouble, you don't have to sit around and wait for the bank to repossess your property. There are other steps you can take, such as a short sale, that provide a variety of financial and personal benefits.
With a short sale, you are selling your property for less than what you owe. Fortunately, you will have the blessing of the lender to do so.
Here are some of the benefits to consider:
-- Knowing you did your best to do the right thing, instead of simply giving up and letting the bank take over your property.
-- You will be eligible to purchase another home sooner than you would if you lost the property to foreclosure.
-- No more mortgage payments to make.
-- Move through the sales process in a traditional manner.
If you want to stay in your home, a short sale or foreclosure is not right for you. If you are okay with moving, especially if you can do so without your home being repossessed, a short sale is an option to consider.
There is a lot that goes into a short sale, including negotiations with the lender. To avoid common mistakes and setbacks, it could make sense to consult with a qualified real estate attorney.
Source: About Home, "Reasons to Short Sale Over a Foreclosure" accessed Feb. 05, 2015