What is a short sale and how does it benefit you here in Fort Wayne? If you’re thinking that question yourself, good question!
This article will address that query, so you as a Fort Wayne IN home owner can tell what your options are during foreclosure or just if your home mortgage is underwater.
What is a Short Sale and How Does it Benefit You?
A short sale can be a smart way to mitigate foreclosure (here’s a great definition of what a foreclosure is in case you’re not sure) on a mortgage, although they can be difficult to attain in today’s market, they often prove to be a simpler way to resolve any debt left over from a loan.
Short sales were really common in the market a couple years back when the flood of foreclosures hit the Fort Wayne market but as foreclosures have slowed down and home values have climbed back up a bit lenders are a little less likely to offer a short sale as an option as they used to be (but they are still doing a lot of them!).
A few reasons you may want to short sale on your Fort Wayne home
Avoid Foreclosure And The Harmful Effects Of It
The benefit of a short sale is to avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt of a foreclosure.
Foreclosure can lead to all kinds of financial problems, starting with the inability to obtain a new loan for a home. This is true, as a foreclosure can stay on your record for up to seven years.
Even renting will become more difficult as your credit score would be affected negatively, and you often have to disclose a foreclosure on a rental application. Foreclosures can also make you wait years to even qualify for a new mortgage.
Credit Worries
With a foreclosure, you face all kinds of ramifications with your credit. Buying a car and renting a house may be close to impossible through the normal bank loan routes.
If you work with money at your job you could even face termination if your employer cares about this kind of issue (most don’t, but don’t rule it out).
A short sale relieves the debt that is left over from what is owed on the mortgage, letting both the bank and the seller move on. A short sale is better for your credit score, which can allow a homeowner the ability to recover in the long run. Your credit report will only show a pre-foreclosure status, which reduces your credit rating minimally compared to a foreclosure.
Buying a New House
A foreclosure can last for a long time, making it impossible to purchase a mortgage again for, as mentioned above, seven years.
Short sales offer a little more flexibility for the seller, allowing new home applications only 2 years after the filing depending on the bank. It also makes a mortgage lender more likely to approve your loan than if you had a full foreclosure, getting you back into a home faster.
Again, this all depends on the actual bank / lender you’re working with so if they’re giving you a hard time a year or two after a short sale, shop around and find a different bank to collaborate with.
Usually No Fees Involved
Another potential benefit of the short sale is there are usually no fees associated with the process from the bank. The banks just want to get the note off of their records and if it can be proven that you owe more than your house is worth and you’re at the risk of walking away from the house the bank would rather work out a short sale instead of working out a costly foreclosure.
With a foreclosure, your mortgage lender may add extra fees that only make the damage much worse
Some real estate consultants may charge a fee for helping facilitate the foreclosure with your bank so check with them before you enlist a real estate agent or firm in helping you with this.
Our company, Sky Line Properties LLC, is able to provide direction on how to give yourself the best shot at a bank approving a short sale with your Fort Wayne area house… so connect with us by calling (260) 220-8715 or shoot an email to us through our contact page here.
Getting a Short Sale- the requirements
You will have to provide the bank with proof of being unable to pay your mortgage payments. This can be difficult and is best resolved by finding a good real estate attorney in your area that has experience dealing in this type of law.
If you don’t know who to contact or where to turn to see if a short sale may be a good option for you to enlist us.
We won’t charge you to sit down and talk about your situation, letting you know all of your options.
We can even give you guidance and helpful tips at absolutely no cost or obligation.
Sometimes we’re actually able to do the work for you or even buy the house from you to get you out from under that mortgage, so that may be a viable option for you.
We buy Fort Wayne houses and we work with home sellers like yourself who are having troubles getting out of your house the traditional way or who can’t (or don’t want to) go the usual route of listing with an agent.
Call us anytime to enlist our help for your quest of a short sale!
Or, if you want to see what we can offer on your house… click the link below and fill out the form on the next page. We’ll make a no-obligation cash offer to you within 24 hours. At least that way you know whether that is an option for you or not.