You wanted to keep your home and tried loan modification. You spent months or sometimes a year working with the bank and even tried doing the trial payment to later find out that you did not qualify. What is next? Your best alternative is doing a Short Sale. What is it and what are the advantages?
A short sale is selling your home for less than what you owe. You will need to hire a listing agent to help you sell your home and negotiate with your lender in your behalf. In a short sale there is no cost to you to sell your home. All costs will be negotiated by your listing agent with your lender including unpaid property taxes and other liens. The key here is to hire a knowledgeable and experienced listing agent.
What are some of the advantages to the homeowner?
- You don't have to go into foreclosure;
- You get to stay in your home until your home is sold;
- Your credit is not impacted as much as a foreclosure depending on the borrower's delinquency;
- You can again get into homeownership after 2 years;
- You can do away from a possible deficiency judgment if your current loan has been refinanced which is also referred to as a "recourse loan."
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