What Is Short-Selling A Home?
Sometimes, tough times in our lives arise. When these moments come along, it becomes necessary to make adjustments. Sometimes people find out that it can be difficult to pay their mortgages on time. Short-selling might be your best bet depending on your situation.
Sometimes, the tighter the economy is, the more homes will be up for sale. Today, we’re going to explore what kinds of things could impact the market and what might force you to short-sell your home in California.
Understanding Short Sales
Before we get started, it is important to note that a short sale is not the same thing as a foreclosure. A bank will repossess property during a foreclosure. During a short sale, your credit score will not be impacted and you’ll get the money to purchase another home.
Typically, the process of a short sale takes off only when a lender tells a homeowner that they can execute the sale.
There are two things that need to happen for a short sale to be valid, including:
- A homeowner is behind on their mortgage payments and they are finding it difficult to get caught up
- The value of the house is less than the remaining mortgage balance due to the downfall of the real estate industry.
The short-sale process can take a long time and can be quite intensive in terms of paperwork. In many cases, the process can take up to a year.
Short Sale Benefits
It should be noted that there are a few benefits to a short sale. Some of those include:
- Credit Score: Often, short-selling a home will allow you to maintain a better credit score. Compared to a foreclosure, credit bureaus will provide you with a better score when you perform a short sale.
- No Fees: When you perform a short sale, you won’t have to worry about fees. In a traditional selling scenario, you will end up giving up 6% of your home value away. The bank, in this case, will be the entity that pays the lender.
- No Emotional Upheaval: A short sale could save you from a lot of emotional down-trot. Going through a foreclosure can be very difficult for one’s self-esteem.
While short sales can be necessary for those who have loans that are more expensive than what they can actually sell their home for, there are a number of factors that can delay them. If you are in need of performing a short sale, it is important that you understand how to deal with potential obstacles.
Of course, if you want to avoid the short sale process altogether, you might want to consider selling your home to an investor. If you are behind on your payments, being able to get the cash you need right away is important.
Make sure to get in touch with us here at National Cash Offer if you have any questions about the home investor process. We’ve helped thousands of homeowners sell their homes quickly and avoid potentially devastating situations.
We look forward to helping you take the next step in your life.