If you owe more on your home than it is worth, one way to sell it is through the short sale process. The short-sale process involves getting your lender’s approval because they will have to accept less money than they are owed. If you are a homeowner interested in selling a house as-is through a short sale process, then you should consider consulting a real estate agent to walk you through the process.
Short sales are advisable for any homeowner who is more than three months behind in payments, and you owe more than the house is worth (upside down or underwater). The short sale process takes quite a while, and once you are in default, it is wise to get it started as soon as possible. A short sale is most attractive to homeowners who are trying to avoid foreclosure. Your credit rating usually take a brutal hit after a foreclosure. A foreclosure also makes it difficult to purchase another home in the future. Therefore, most homeowners prefer to go the short sale route and save their credit. This blog post will provide you with some basic information about the short sale process.
Demonstrating Proof Of Hardship To Get Lender’s Approval
When you are underwater with your mortgage, you will need to prove to your lender that you are undergoing significant hardship so that they can approve the short sale. The hardship must demonstrate your home is no longer economically viable. One way is to show that your debt-to-income ratio has risen. The best way to make your hardship case for short sale approval is to contact a realtor who is a short sale specialist.
List Your Property With A Diligent Agent
After getting approval for a short sale from your mortgage lender, you will need to list your home with your short-sale real estate agent so that you can start fielding offers from buyers. Your agent will present all offers to your lender for approval, and the process can take a while, depending on the market conditions. Once the lender finds an attractive proposition, they will accept it and approve the sale. Most lenders are looking for a cash offer.
Short Sale Impact On Your Credit Score
After completing the short sale, you can expect your credit score to drop considerably. You also may be responsible for the difference between the sale price and the outstanding balance unless you get a waiver of deficiency from the lender or live in a state that doesn’t allow deficiency judgments. (Colorado allows deficiency judgments) The actual point value will depend on how your seller lists the debt resolution. A short sale can remain on your credit report for seven years. However, it is possible to get a home mortgage before the seven years are up if you get your credit repaired.
If you are considering a short sale process, consult a reputable real estate expert like Bonnie Buys Houses Fast who will help you find the right solution.
Bonnie Buys Houses Fast
11605 Meridian Market VW Unit 124 #243
Falcon Colorado 80831
719-659-9979
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