Short Sale – Your Best Way Out

By
Real Estate Agent with The Palm Beach Group

 

It is indeed funny to think that years ago most people had not heard of a short sale transaction. It was something homeowners were not familiar with. Even Realtors and lenders for that matter rarely encountered these transactions in their daily work. Lately,  short sale transactions are getting more and more popular especially amongst distressed homeowners.

Of course, this should not be surprising. Short sales remain the best foreclosure alternative out there for homeowners who:

  • - Are underwater or owe more in mortgage debt

  • - Are on the brink of mortgage default and did not qualify for a loan modification

The reason is simple. Short sales allow them to sell the home and pay off their mortgage debt while suffering minor credit damage.

True, getting a short sale approval can be challenging but if you make sure every document is submitted and you have provided a good enough reason why you are applying for one, the home should go to closing. The hardship letter, for many, is the trickiest to comply with. It has to be truthful enough to convince the lender and at the same time clear enough for the lender to see there is no other choice but to approve the short sale.

There is also the matter of finding a buyer and making sure his interest on the property stays until the lender accepts the offer. After all the challenges, being able to avoid foreclosure with a short sale will make you feel all the trouble was worth it.

As for lenders, they now view short sale as a solution to their growing inventory of REOs. To make the deal taste even sweeter, the federal government has offered them incentives for completing such transactions. Of course, there are lenders who are too stubborn to realize foreclosure will cost them more money in the long run compared to a short sale.

At the end of the day, it is really just a matter of doing all you can to avoid foreclosure. If hiring the best short sale Realtor will help your cause, then do so. It might be your only chance to get out of this mortgage mess.

Comments (1)

Goran Utvic
606 Homes LLC | Chicagoland Brokers Inc, Chicago IL 60656 - Chicago, IL
We Buy & Sell Chicago Houses Fast

Jared - I agree...a homeowner's best option to avoid foreclosure is a short sale...with the flood of short sale properties here in the Chicago real estate market it is a sure sign that homeowners are realizing the benefits of short sale.

Jun 18, 2011 02:38 AM