In life, bad stuff happens. Sometimes people lose their jobs or fall behind on their bills. When the hardship is so great that they can no longer make their mortgage payments, a whole new set of challenges arises. Fortunately, foreclosure isn't the only option. If you or someone you know is financially distressed, a short sale may be the best option.
For those eligible, short sales can be a far better alternative to foreclosure. In a nutshell, a short sale is when the lender accepts an offer that is less than what is owed on the property. For homeowners, the negative impact on credit is reduced and the process is quicker. This can be a godsend to those facing the stress and embarrassment of possible foreclosure.
The benefits of short sales also can extend beyond the parties directly involved - they can be better for the community, too. It's unfortunate when a foreclosure has a negative impact on the value of neighboring properties, but it happens. When the homeowner remains intact and the home is marketed just like a traditional transaction, the stigmatism of an unkempt, abandoned property is avoided and neighboring property values are more likely to remain stable.
Weichert, Realtors® - Engle & Hambright specializes in short sales. We've worked with dozens of homeowners to help them move forward with less stress and embarrassment. Our team understands short sales inside-and-out. We have good working relationships with lenders, know what they're looking for and make the process easier and quicker for all involved.
Short Sales: Understanding the Basics
What is a short sale?
A short sale works much like a traditional real estate sale, with one major difference - your lender(s) agrees to accept a sale price that is less than what you owe on the property.
How do I qualify for a short sale?
Each situation is unique in a short sale and banks evaluate hardship differently. Common reasons for short sales are job losses or a reduction in income, financial issues caused by medical concerns, having to relocate for a new job, etc. Banks will evaluate your entire situation, including personal and financial reasons, in determining eligibility for short sales.
Do I need to stop making mortgage payments for the bank to approve a short sale?
Not necessarily. The bank needs to see a solid reason why you are unable to continue making your monthly payments and/or must sell, i.e. - the loss of your job, relocation, divorce, etc.
What are the benefits of a short sale?
The negative impact on your credit is far less with a short sale than a foreclosure. In some cases, you will not be responsible for repaying the balance of the loan. You will come to a resolution faster, enabling you to move forward quicker and with less stress.
Who can help me determine whether I'm a candidate for a short sale?
The short sale specialists at WREH can help you identify your options based on your unique situation. Our caring, knowledgeable agents have helped many homeowners come to a resolution and move forward with their lives.
Are you or someone you know facing foreclosure? There's nothing to lose in knowing all of your options. Call us today at (717) 291-1041 or fill out this form to have an agent contact you.