Well, no one really wants to short sell their home. Just as none of us wants to lose our job, take a pay cut, lose value on an investment, experience medical hardship, etc. Many times in life we are forced to choose between difficult alternatives. A short sale falls in to this category for most people. Many of us owe substantially more on our homes than their current fair market value. You might have asked yourself "Do I really want to continue paying for an asset that is worth much less than I owe on it?" From a purely financial standpoint the answer is usually... "No". Some of us are faced with an even more difficult question..."Can I afford to continue making my mortgage payment even if I want to?"
Our home, though, is more than a financial investment. It is an ideal that involves our emotions and that is more than the sum of its' financial value. Allowing our emotional attachment to influence our judgment too much, though, may have dramatic consequences that persist for years. Most people do not want to lose their home. Unfortunately, if the financial hardship cannot be alleviated or if a meaningful loan modification (meaning a loan mod that reduces the payment to a truly affordable amount) is not a viable option then a short sale or foreclosure are the only remaining options. Ignoring this fact will only make matters worse. The consequences of a foreclosure are generally far more damaging than those of a short sale. Click here for a comparison.
Delaying a proactive solution such as a short sale makes the likelihood of foreclosure even greater. A short sale conducted by an experienced agent and/or negotiator provides you, the homeowner, a number of potential advantages over foreclosure:
1. A strong likelihood of remaining in the home longer than you would if foreclosure proceeds.
2. The ability to obtain Fannie Mae & Freddie Mac (approximately ½ of all mortgages) financing again within 2 years.
3. Less overall damage to and a shorter duration of negative impact to your credit rating.
4. The dignity of selling your home rather than being evicted by the bank once foreclosure occurs.
For a more detailed look in to the comparison between short sale and foreclosure click here.
An educated public is vital in this market, and IML Real Estate will continue to provide updates on this program and others. Considering a short sale? Please contact IML Real Estate with any questions/concerns you may have at 800-811-7615 or request a free consultation here.