Most homeowners often find themselves in a difficult financial situation, forcing them to struggle with their mortgage payment. If you fear your inability to consistently meet mortgage payments will only lead you to foreclosure with no viable option in sight, then you are wrong. When you talk to a leading real estate attorney, you will learn about short sales, which, in many cases, is a better option than foreclosure.
What is a Short Sale?
A short sale takes place when a homeowner owes a greater mortgage balance than the average market value and sale price of the property at the particular point when the owner wants to sell. In a short sale, the homeowner is looking to reach an agreement with the bank, or any other financial institution, to accept a lesser amount than the total mortgage owed. This example will explain the concept of a short sale: If a property is sold for $200,000, but the outstanding mortgage balance is $250,000, then the seller is $50,000 dollars “short” or behind payments to the lender.
The Benefit of Short Sale
The biggest merit of a short sale is homeowners can sell their home at a reduced value that is worth less than the current mortgage on the house, preventing their property to be auctioned off by the bank. For many homeowners, the option to sell their property at a short sale is better than facing a foreclosure. No two short sales are the same, you will need a capable real estate lawyer to help you with your short sale and all its procedures.
If your house is in foreclosure, you might face a possible lawsuit, but in a short sale, you won’t have to. Your lawyer will help you and your lender work out a deal that suits both parties, which is why a short sale is the better alternative. A short sale won’t hurt your credit history as much as a foreclosure will. If you wish to opt for a short sale, lenders are willing to cooperate with you. This way, both you and the lender find a safe way out of a difficult situation. It’s unlikely you will be required to pay off debt for years in a short sale. If the bank decides to auction the house off your house after foreclosure, the debt will follow you for years.
If you wish to get more information about short sales and foreclosure, you can schedule a free consultation by contacting Jackson Abdalla Law Group at (773) 550-3853 to speak with an experienced short sale lawyer.