Frequently Asked Questions About The Short Sale, Forbearance, and Foreclosure Process
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Short Sales, Forbearance, or Foreclosure?
Most of the home owners that are in pre-foreclosure do…
A short sale occurs when a property (land, residential, or commercial) is sold at a price lower than the amount the homeowner owes on the mortgage, as agreed to by the lender, investor or mortgage insurer.
The simple answer is yes… the not simple answer is that while you can execute a short sale on your own, the likelihood of getting it approved by your lender is slim to none. On top of that, the chances of finding a buyer is also not great. We have created a free download if you’re looking to execute a short sale yourself, but we’ve been doing this for years and have several happy clients… That’s why we specialize in Short Sales. It’s a complicated niche of Real Estate and it’s ALL we do. Give us a call today and we’d gladly help you get started in the process.
A short sale is when a homeowner in pre-foreclosure or foreclosure is able to negotiate with the bank to sell the house for less than the amount owed to the lender.
Foreclosure is when the bank repossesses the property from a homeowner that is unable to pay their mortgage.
A short sale is often less expensive for the bank and less involved. It allows the homeowner’s credit score to be less affected and often times is a much less embarrassing option for the distressed homeowner.
Forbearance is the postponement of mortgage payments for a set amount of time. Most often the lump sum of the postponed payments is due once the moratorium is up.
While forbearance may seem like a viable option for many to postpone their mortgage payments… It will often become overwhelming as the payments become due again. In most cases forbearance will lead to pre-foreclosure or foreclosure. If you are in forbearance and unable to save for the upcoming payment, contact us to start talking about a short sale.
While a short sale will still affect your credit score, it will often be much less of an impact compared to that of a foreclosure.
Contact us today to talk about the differences between a short sale and a foreclosure and to get started with the process today.
Having Trouble Understanding Short Sales?
Understanding the short sale process can be challenging. There are so many moving parts. We’ve decided to simplify that for you. We’ve created this guide that will help you understand what a short sale is, how the process works if a short sale is right for you, and how to get more help. Click the button below to download.