A short sale is a real estate transaction where the proceeds of the sale are less than the amount the seller needs to pay the mortgage debt and the costs of selling. For this deal to close, all interested parties who are owed money must agree to take less or possibly no money at all. For this reason short sales can be difficult and slow moving transactions. For sellers who are having difficulty paying their mortgage a short sale is a viable option and in the long run less damaging to the sellers credit than a foreclosure.
How Can A Short Sale Benefit You?
It can help preserve your credit. Although late mortgage payments will have an adverse effect on your credit score, it will be more damaging to go through a foreclosure. Under Fannie Mae guidelines with a short sale you could be eligible to buy a home in two years rather than five to seven years as the result of a foreclosure.
A short sale will help you avoid a foreclosure and all the accompanied negative ramifications. In many cases, if the bank agrees to a short sale, and the property is actively on the market, the bank will work with the homeowner to avoid a foreclosure.
You maintain more control with a short sale compared to a foreclosure. Once the foreclosure process begins the bank is in the driver’s seat.
For more information on how a short sale might be beneficial to you please contact one our qualified professionals at Berkshire Hathaway HomeServices Nutshell Realty.