The rise in property values, the decline in employment aspects and the overall tough situation of the market have all been triggers in increasing the number of people opting to get rid of their mortgage blues. Interest rates, which had once been a golden opportunity for investment in Las Vegas, are now diving to sky high values which have resulted in a large number of homeowners losing their property to lenders.
In times like these when foreclosure seems to be inevitable, the prospect of a successful short sale may prove to be a blessing in disguise for some. Read on to find out whether you are eligible for a short sale, what benefits can you get through it and what should be your ultimate choice – a foreclosure or a short sale.
Table of Contents
The Basics
Foreclosure comes with major losses attached to it, which may continue to haunt you even after your property is long gone from your hands. In the event of a foreclosure, you not only have to let go of the property, but the loss marks a big stain in your credit history as well. And the social stigma attached to the situation is another baggage to take care of.
On the other hand, a short sale lets you get some compensation for the property, if the bank or your lender accepts to settle the deal with a lesser amount than you owe. The deal has benefits both for the homeowner and the lender, as it saves tedious documentation, time and ofcourse money for both the parties.
Settling for something rather than nothing is often a good call, so do consult a short sale expert for your options and eligibility regarding a short sale. Typically, in order to be eligible for a short sale, you need to have a mortgage debt higher than the value of your house plus you must be able to produce a liable reason for your defaulter status, like financial hardship, loss of job or heath conditions.
Pros and Cons
- A short sale brings you in better and more direct control of the entire selling process, so that you know who is buying your home and for how much. You can still get a respectable price for your property, saving yourself from months of endless wait and humiliation and big financial setback. A short sale is more or less similar to a normal home selling procedure.
- Though the credit history is affected by a short sale as well, the result is not as drastic as a foreclosure. A foreclosure stays in your credit report for a period of almost 7 years, and even restricts you from buying another home within this period.
- The short sale process may require a lengthy documentation process and some smart negotiation and planning to strike the deal. Many homeowners are wary of going through the tedious procedure, but there is an easy way out of this. Opt for a competent short sale expert to handle the entire short sale, and they can guide you exceptionally in making the right decision regarding your property prospects in the market.
