A short sale is one possible alternative to a foreclosure when loan modification fails. It should be seen as one of your last resorts. When you arrange a short sale with your lender (an option your lender may or may not consider), the lender agrees to accept less for the house than it is currently worth.
There are a number of reasons, but a couple of them are that the foreclosure proceedings can be not only timely but expensive, and the bank may see this as an opportunity to make off with the smallest possible loss.
If your house is about to go into a foreclosure, you are facing quite a tribulation. Not only will you be losing your home, but you will also be losing your credit and suffering from the loss of dignity which comes with a foreclosure.
Many people facing a foreclosure are desperate to find a way out. One possible alternative is what is known as a “short sale.” Is a short sale better or worse than a foreclosure? That depends wholly on you and your personal situation.
A short sale is a transaction in which your lender is agreeing to accept less for the house than what the house is worth.
A short sale isn’t always an option; it is something you have to apply for with your lender, who may or may not grant you the option.
A common misconception is that if you cannot afford your mortgage your only option is to go into foreclosure and lose your home. Foreclosures can be long, stressful, and cause tremendous damage to your credit. If you want to avoid these issues, an alternative is doing a short sale.
Now you're probably wondering, what is a short sale? Essentially, short sales involve selling a property for less than what is owed on it. While short sales also have disadvantages, they are significantly better than foreclosures.
When looking into buying a home, a great way to get a nice home for a decent price is buying short sales. Short sales are homes that are being sold for less than what is owed on them.
When a home owner defaults on their loan due to financial hardships, they may request a short sale from the lien holder (usually a bank).
This can be great for buyers looking for a deal. There are certain things you should look into with short sales however, and here are some tips that will help you along the way.