By now, most of you have probably heard of the term short sale. But for those who have not, it is when a seller, usually one in a current financial hardship, tries to sell their home that is worth less than the amount owed on their mortgage. With a new buyer in place, the bank needs to approve the loss the seller will be taking as a result of the sale, and once approved, the short sale can close.
Today, there are more than 7 million households in trouble. Which could mean that the home is either already in the foreclosure process or the household is late on their payments. Unfortunately, about half of the homes that get foreclosed on in this country, the owners knew nothing about it. Short sales have become the preferred process of absorbing the immense amount of distress sales that are mounting throughout the country. Many banks today are seeking alternatives to foreclosures.
While going through a short sale, the seller will remain the owner while negotiations are being made with the bank concerning the terms of the sale and how it will affect the financial future of the seller. You want someone who is experienced and relentless, when dealing with a large financial institution and your financial future, on your side.
Many people choose to ignore all the awful things that are going on around them and allow their home to get foreclosed right from underneath their feet. A foreclosure will destroy your credit and is most likely the worst thing you could do to yourself. However, assuming that you have researched alternatives to stay in your home, a short sale would be the best thing to do for yourself. There are some government programs created to help keep homeowners in their home, and people need to know that these programs do exist and that they are a feasible option. Although, for many homeowners, the affliction is far too severe to justify staying in the property no matter how the terms of the loan are readjusted and that's when a short sale becomes the most logical and reasonable solution.
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