One way you could avoid foreclosure is with a short sale. While you will still have to leave your house, you will not have a foreclosure appear on your credit history and you will avoid the potential public sale or auction of your house. Additionally, you will have more control over the timing and manner in which you leave your house.
What is a short sale?
A short sale is a commonly used alternative to foreclosure. If you can no longer afford to make your mortgage payments and your house is worth less than you owe, a short sale allows you to sell your house at its current fair market value. The investor(s) or owner of your loan must approve the sale because they will be receiving less than the total amount owed.
How does a short sale work?
At Black Diamond Real Estate we will help you determine which short sale program is the most appropriate for you and explain what you need to do to get started. Your agent will help you list your property for sale.
Why should I consider a short sale?
A short sale allows you to settle your mortgage for less than you owe. Plus, you can avoid foreclosure and potential eviction from your house. Although a short sale will have a negative effect on your credit, it may allow you to qualify for future credit sooner than if your house went through foreclosure.
Additional benefits of a short sale include:
- You may be eligible for relocation assistance to help with moving and rental expenses.
- If the short sale is successful, the bank or the investor of your loan may elect not to pursue the remaining unpaid balance on a mortgage after a short sale.
- Real estate commissions paid to agents are included in the short sale, unless there is a cash contribution or promissory note required on the sale, therefore, there are no additional out of pocket costs for the homeowner.