Our Guide for Realtors & Sellers interested in a Short Sale
A short sale is a method of foreclosure prevention that homeowners can use to petition their loaners to forgive their debt. To apply for a short sale, a homeowner, likely under the consultation of a short sale realtor, has to fill out various forms to explain the need for selling the house in a short sale.
Should the loaner accept the short sale petition, the house will enter the market at a lower price. The bank will forgive all or a portion of the loans that the homeowner owed. When the house sells, the bank will accept all of the proceeds from the sale. They will then pay a percentage of the sale to the short sale realtor that processed the application and sold the home. These results vary depending on the homeowners’ situation.
Sending in a short sale application without consulting a short sale realtor is like entering a court without a lawyer representing you; you will need to know the parameters of what the process requires. A short sale realtor will show you how the details of your situation are pertinent to what the application requires.
While short sales do still have some negative effects on your financial status, they will likely be much less than those of foreclosure. Those that avoid foreclosure by instead closing out in a short sale are likely to be able to purchase a new home within two years of selling the short sale. Foreclosure endangers homeowners from owning a home for at least another seven years, not to mention buying a car or making any other large, credit-based purchases.
Owing more in interest on your mortgage payments than what your house is worth may be driving you to try anything. Short sales have been logical courses of action for plenty of homeowners in the St. Petersburg areas and others around the country. However, that does not mean it may be the best for your situation. This is another area where short sale realtors are necessary. By consulting Protected Title, you can find out if the parameters of your situation are appropriate for a short sale.
By now, the idea and results of a short sale may either be exciting or frightening you. Either way, the risk of losing your home and harming your financial future may encourage you to contact Protected Title. By contacting us, you will start a relationship that can lead to freedom from your debt, the sale of your home, and your moving on into a new residence.