A short sale happens when a lender agrees to accept less than the balance remaining on a home. It is a way for sellers to avoid foreclosure and sell their St Louis or St Charles homes.

It seems like a good idea for people who owe more on their home than it's worth, but that doesn't mean it is right for everyone. Should you consider a short sale on your St Louis or St Charles  home?

Pros to doing a short sale:

  • You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.
  • You can still sell your property in a declining real estate market, even if you owe more than the home is worth.
  • Buyers sometimes get good deals on the property or may be able to buy a home at market value in a popular area they couldn't previously afford.
  • While a short sale isn't ideal, it is typically better than a foreclosure which stays on your credit report for 10 years.
  • If your home goes into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.

Cons to doing a short sale:

  • The lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt.
  • The bank's loss is considered taxable income for you, and you may have to pay taxes on the amount.
  • Short sales do stay on your credit report and may make it difficult for you to a get loan in the future.
  • You may have to find a real estate agent willing to work for a smaller commission.
  • Short sales take longer to close than traditional home sales.

I can help you decide if a short sale on your St Louis or St Charles home is right for you. Call me today at 314-630-4227 or email me at rfisher@sellshomesfast.com for more information about your selling options.

Links:

Short sale  http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm 

foreclosure  http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure 

lender may refuse to do the short sale  http://homebuying.about.com/od/shortsale/a/100108_RejectSS.htm

 

 
This post has been included in Missouri Real Estate News

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Ralph E. Fisher III

Saint Louis, MO

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The Fisher Group / ReMax Results

Address: 8081 Manchester Road, St Louis, MO , 63144

Office Phone: (314) 781-7777

Cell Phone: (314) 630-4227

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