Selling a home can be very tricky and sometimes be very over whelming. A short sale makes the process of selling easier for the homeowner; however, you must consider all of your options before doing so. Here are some of the reasons why you should consider short selling your home.
1. Dept Forgiveness – Debt forgiveness is one of the biggest benefits of a short sale. For example, you mortgage is $500,000, you sell your home for $300,000, that would make your mortgage $200,000.
The bank that helps you through the short sale will “forgive” you of the remaining amount, making you debt free. Keep in mind that the remaining balance covers all of the additional costs of the home such as closing costs, real estate commissions, property taxes, etc.
2. Credit Impact – Having good credit is extremely important. You have to have good credit to buy or rent a home, care, apartment, even a hotel room nowadays. It is a good idea to sell your home if you are behind on your mortgage payments for a couple reasons: it will not affect your credit, and the bank will forgive your debt.
Many people choose foreclosure versus short selling because potential home buyers would rather buy a “fixer-upper” rather than waiting several months for the bank to approve the homes’ short sale. Even though this sounds appealing, short selling is a better option for the homeowner because it does not affect credit.
3. Buying a Home – You can buy a new home after short selling; however, it must be at least two years later. Two years might sound like a lot of time; however, foreclosures require much more time in between foreclosing and buying a new home. You must be careful while you short sale; make sure your credit score does not drop, keeping up with your mortgage payments and other finances in the home, etc.
4. Keeping your Dignity – Anyone who has ever foreclosed a home would know that it is humiliating having your own property taken away from you in front of your neighbors. When a short sale happens, the home stays in good condition and the bank takes care of all of the transactions.
As you can see, there are many reasons why you should short sell your property if you have the option. Just remember to look at real estate property for sale after you have been approved by your bank. You would not want to fall in love with a real estate property for sale that you cannot have!
Author Bio: With huge real estate consulting experience Denis is an expert in valuation, land development, commercial constructions and managing residential and commercial real estate assignments. He provides real estate industry insight and also detailed housing market information, guidance for new home buyers through articles, papers, websites and real estate magazines. http://www.pallspera.com/ is one of the websites where he shares his own views and insights.