Understanding Short Sales
You’ve probably been hearing a lot about short sales in the past few months- chances are you know someone who’s been through the process. And if you’ve been hit as hard by the current recession as many have been and have a home you’re having trouble affording, you may be considering a short sale as a viable option.
What’s a Short Sale?
Let’s assume you understand the basics of the concept, and are familiar with the broad strokes: basically, a short sale is what occurs when a lender agrees to accept less than the amount owed against a home because there is no longer enough equity to sell and pay all costs of sale. Put simply, if your payments are in arrears and it’s looking more and more like the lender won’t be able to recoup the full cost of the home, a short sale may be their best way of their getting something rather than nothing.
It Isn’t Perfect, But…
There’s no question that a short sale is far from an ideal outcome for anyone who owns a home. If you find yourself in dire straits with either foreclosure or a short sale looming as your only two options, which do you choose? Consider which does more damage to your credit? Opinions on this topic vary, but the bottom line is, they both do a lot of harm. Foreclosure typically knocks between 200 and 300 points off your score, while short sales have been known to trim your credit rating by anywhere from 100 to 300 points. Bottom line: your credit will suffer either way, although you have a slightly better chance of losing less money and credit rating if you work with a real estate agent and negotiate a short sale.
It’s a Way to Protect Your Credit Rating.
We understand how hard it is for anyone to be facing these possibilities; if you’d like to know more about this process or have any other real estate questions answered, please don’t hesitate to reach out to us. Express Realty Services has a fully-staffed short sale department; we can help you work through every facet of your short-sale negotiation.
Make sure you're dealing with a reputable company that keeps their word, so you don't end up in a lose-lose situation.
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Work with Express Homebuyers and you'll have both Peace of Mind and Cash In Your Pockets.
- Do they have proof of $$ in the bank that shows they are making an honest offer?
- Do they have an A+ rating by the Better Business Bureau?
- Do they have video testimonials from actual customers that they can show you?
- Will they provide up to a $20,000 cash advance to help with expenses when moving?
- Do they have a physical office and staff to help you through the entire process, or are they just working out of their car?