Short Sale Advantages
September 8th, 2009 by adminFinding a real estate company that will help you with your short sale is a very important factor as negotiating with the lending company may be more than you are prepared to do. A quality company that will help you with a short sale can give you all kinds of reasons to use their service.
Some of the best reasons you should consider using experts include:
you owe more money on your home than what it is worth
your payments have increased due to an adjustable rate mortgage
you are moving to a new area and cannot sell your home
foreclosures in your area have ruined property values
you wish to avoid a default judgment on your credit
you wish to avoid a foreclosure on your credit
If you happen to fall into one of the categories above you may wonder if there are benefits to the seller. The answer is yes, there are benefits to use experts when you wish to sell your property with a short sale.
These benefits include if you find quality experts:
Eliminates mortgage debt
Eliminates ongoing payments
The seller can stay in the home during the process and not make payments
Closing costs are paid by the lender
real estate commission are paid by the lender
Foreclosure is avoided
No effect on your credit
Avoid filing bankruptcy
A lending company working with experts will allow a short sale due to the fact that the lending company does not want to own the property, the foreclosure process is expensive, and in some cases, it is in the best interest of the lending company.
If you look at the overall advantages and disadvantage of short sales and foreclosures, you will be able to make a better decision for your situation.
Short Sales Advantages
Avoid foreclosure
Avoid mortgage payments
you can purchase a new home in 2 years, under Fannie Mae guidelines
In some cases, you can purchase a home immediately under Fannie Mae guidelines
Short Sales Disadvantages
Waiting for a denial or acceptance from the lending company
Show proof to the lending company of your financial problems with personal records including assets, liabilities, bank accounts, and tax returns.
Keep your home ready for potential buyers until an offer is received
Pros for Foreclosure
Avoid mortgage payments
The home is still yours until the foreclosure is complete.
No worries about potential buyers
Cons to Foreclosure
A Notice of Public Sale can be posted on your door
A foreclosure will remain on your credit report for 10 years.
Under Fannie Mae guidelines
, you will not be able to purchase a home for 5 years.
Article Tags: Short Sale, Lending Company
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