Buying a new home is exciting and confusing. There are a lot of steps to buying a home, and people have questions. These are the most common questions home buyers have, and the answers.1. How do I
All You Need to Know About Short Sales
Dated: June 21 2022
When you can’t keep up with your mortgage payments, your lender may offer you a short sale. While this may sound like the best solution, there are some things you need to know before deciding if a short sale is right for you. Here are the pros and cons of short sales to help you make an informed decision.
A short sale is a way to sell your home for less than the amount you owe. Most people opt for a short sale when they owe more on their mortgage than the house is worth. In a short sale, the lender agrees to let the homeowner sell the house for less than what is owed. The proceeds from the sale go to pay off the mortgage, and any money left over goes to the homeowner.
The Pros of a Short Sale
One advantage of a short sale is that it would not have a big impact on your credit score as a foreclosure would. Another advantage of a short sale is that you may be able to negotiate with your lender to have them forgive some of the debt that you owe. This is especially true if you can prove that the reason for the short sale was beyond your control, like a job loss or medical emergency.
The Downside of a Short Sale
While a short sale is not as bad as a foreclosure, a short sale will still negatively impact your credit score. This is because a short sale is still considered defaulting on your mortgage. Lenders will report this to the credit bureaus, and it will stay on your credit report for as long as seven years. This can make it challenging to get a loan for a car or a new home during that time.
Another thing to consider is the amount of money you will have from the short sale. Remember, you are selling your home for less than what you owe on it. This means that any money left over after paying off your mortgage will go to the lender.
Are You Considering a Short Sale?
If you are considering a short sale, be sure to speak with a real estate agent and a loan officer first. They will be able to help you understand the process and what to expect. If you’d love to speak with a real estate agent in Missouri, call us at (417) 991-2289.
Hello! My name is Merry Anne, and I am the Broker Associate of Premier Property Group. I began my real estate career in 2006, after having been an area 1st Grade and Preschool teacher for 5 years. I b....
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