Facing foreclosure is one of the most challenging and heartbreaking situations a homeowner must face. It is the unimaginable possibility of losing your property-your biggest asset. However, if you are faced with such a possibility, it is important to think deeply and make pragmatic decisions.
Financial distresses, losing a job, or economic downturns can cause countless homeowners to lose their homes after falling behind on their mortgage payments.A foreclosure is an extremely stressful and financially damaging process that will cripple your financial health, damage your credit, and destroy your asset. The best strategy to avoid foreclosure and financial distress is to consider a short sale.
A short sale is a process where the bank or lender allows the homeowner to sell off the property for less than what is owed. The homeowner has to find an agent and list the house on the market. With such a transaction, a homeowner hopes to sell off the property in a quick sale so the lender can recover most of the amount that is owed.
Such a transaction is beneficial for both the homeowner and the lender. It helps the homeowner avoid the possibility of foreclosure. At the same time, the lender can escape the costs of filing a foreclosure suit, and the long-term expenses of owning a foreclosed home, which is always hard to sell-off. While a short sale does not help the borrower pay off the entire debt that has been incurred in the mortgage, it is still a much more pragmatic alternative to face home foreclosure. It will safeguard your credit and your financial health. A lender is much likely to agree to recover a substantial portion of the loan as opposed to incurring a total loss.
Banks and financial institutions are more likely to accept a short sale as opposed to enforcing foreclosure. Therefore, a short sale is beneficial for both the homeowner and the lender.
When homeowners agree to sell for less than owed, they not only avoid foreclosure but more importantly, they protect their financial health and wellbeing. Homeowners are increasingly concerned about being sued for a deficiency judgment, which is a typical exercise conducted by banks and lenders following a foreclosure.
A short sale is an ideal strategy to avoid foreclosure, which is a lengthy and financially crippling process. Feel free to get in touch with our team for further information on the process of a short sale.
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