Owning a home is a dream almost everyone dreams of, but not everyone gets to live in their dream house. Some settle for less while others have to face a tug of war between managing living and loans. Prices of real estate have been rising consistently, and at a time they grow to such high that the real estate market crashes with the burden on those living in a mortgaged property.
Most of the time, when property market faces a crash, those on mortgage and not able to cope with the loan are faced with the troubles of a foreclosure. But is there any other way of saving the difficulty of a foreclosure? Well, earlier there was no way out. People used to live under the pressure of losing their home and all that they own along with facing the high charges of facing a foreclosure suit.
If you are facing a downturn with repaying own loans for a mortgaged home, don’t keep on piling the dues. That could only worsen the situation. Ones your property is marked foreclosed it would become even harder to find a buyer who can help you recoup the mortgage. What’s better? Well, a short sale. Yes, a short sale is an answer to mortgaged home that is running behind dues.
Here are some significant benefits of short sales that will help you overcome your foreclosure fever. If you take up a short sales, you will be able to recover a substantial portion of your debt and save you from a lot of troubles.
- Protects you from a foreclosure: Foreclosure is not healthy for the owner nor for the lender or the property market in general. If a homeowner gets a foreclosure, it not only affects his present financial status instead of damaging his entire credit score, which makes it difficult for him to get a loan for property in future. A short sale protects you from getting a foreclosure this helps to safeguard your credit score.
- Saves money: well, if you ever had words with a person facing a foreclosure you would know how hard it is on your pocket. On an average a foreclosure legal cost is about $7000-$8000; and that’s an average. It could be far more than this, making it unbearable for owners to pay. Such high cost that too in the times of financial crisis can ruin someone’s life. Save yourself the trouble of bankruptcy using the short sale method.
- Relieves lender: the process of foreclosure involves lengthy documentation procedures by the lenders that are very time and effort consuming. Even lenders face difficulty in undertaking such documentation. However a short sale saves the lenders from hefty paperwork and save them lot of time.
- Suitable for the housing market: The number of foreclosures over the years have left the housing market with too many underpriced properties that are hard to sell. When you make use of short sales, the lender’s agents arrange for a proper party that can buy your home at a reasonable price and relieves you from the financial burden, thus saving the property from foreclosure. This creates a positive impact on the property market with less number of foreclosed properties to sell.
- Benefits the investors: short sales can be an excellent opportunity for shrewd investors who can benefit from buying a property that goes out for short sales. Firstly such property are available at less than market value. Secondly, their resale value is higher as it would then be a clear property and above all investors can get more accurate information about the property from previous owners.
- Excellent opportunity for agents: property agents who specialize in short sales can find some real groundbreaking deals. Hometowns can go through all the negotiation, legality and paperwork for short sales on their own. They need a sound agent who can work things in their favour.
- Provides some control to owner’s: property owners who ones enter into foreclosure are faced with a lot of troubles, legal documents, notices, paperwork, emails, and advances. Homeowners who undertake short sales have some ground to negotiate their terms and keep the ball in their court.
- Avoid scams: foreclosures are stressful, owners are so disheartened that they become vulnerable to opportunist who can make their situation even worse. There are scammers who are on the hunt of such people to fill their interest. A short sale, on the other hand, protects the interest of the owners and save them from such scammers.
- Peace of mind: the homeowners although disheartened, can still find some peace with short sales, as they can easily find a way out of foreclosure. No impact on their finances, no credit score problems, or fear of bankruptcy leads them to peacefully come out of this foreclosure situation.
Well, hopefully, you don’t have to see such time, but even if you ever had to, now you know what to do.