What is a short sale in Rowlett and How Does itAre you asking yourself what is a short sale in Rowlett?
What is a short sale in Rowlett? This is an important question to answer considering that, many homeowners have in many ways misunderstood this real estate concept especially when considering how they can avoid foreclosure. While a short sale can help you when in such a situation, it is important to fully understand this strategy before resulting to its use. It is true that a short sale can help homeowners faced with foreclosure to avoid this predicament and get reprieve from mortgage loan but this process can be very long.
So what is a short sale in Rowlett?
A short sale is an option used by homeowners when a credit union, bank or any other lender from whom they have borrowed money allows them to sell their house to a third party at a lower price than what is remaining in their loan borrowed. A short sale can be used by the homeowner to avoid foreclosure but this requires the approval of the lender before going on with the sale. However, a homeowner should compare foreclosure and short sale to see which one best favors them and see which option best favors them in order to make the right decision.
There are many reasons as to why a lender could accept a short sale but the main reason is that a short sale will be much cheaper for the bank as compared to a foreclosure. Banks normally consider a number of things including the expenses they are to incur if they opt for foreclosure and these are normally enormous. Banks normally accept short sales because it helps them recover a certain percentage of what is owed to them by a homeowner thus avoiding complete lose of their money. This way, banks with non performing loans can avoid fund suspension or lowering of amounts provided by the Federal Reserve.
What options do you have when it comes to a short sale?
Homeowners should be able to consider different options available to them as far as short sale is concerned. Basically, there are two options which might be offered by banks, credit unions and other lenders, making it important for you to know which option is available to you. These include the following: –
· Deficiency judgment: –
Under this short sale option, a homeowner is required to pay any balance of the mortgage loan that is withstanding following the short sale. This means that if you owed the lender $1,000 and the short sale fetches $800, the balance of $200 will have to be repaid according to an agreement to be made between you and the lender. It is worth noting that the information regarding the short sale deficiency judgment remains on the homeowner’s credit report and can only be removed after the balance has been paid fully. In most cases, balance that remains after this kind of a short sale will take time to clear and negative credit report can stay for many years.
· Payment in full with no deficiency judgment: –We buy houses fast and in any condition or situation including short sale. Call today!
This option is advantageous and therefore popular with many homeowners. Once the property is short, the lender keeps the proceeds and does not pursue the homeowner for any balance that remains. This means that the homeowner will be free of any obligations to clear the balance that remains after a short sale.
What is a short sale in Rowlett process used by a lender? Once “What is a short sale in Rowlett?” is answered, the next thing you should be able to understand are the common processes used by lenders and if you qualify. A short sale has many advantages for homeowners who are struggling financially, but always consider whether you qualify for this option before making the final decision.
Please be aware that there are other options available to you. We buy houses in Rowlett to help people just like you. Of course you could take your chances selling the home yourself, and you might even come out on top if you structure and package your offering correctly. We’re not saying there is no other way to sell your home, we’re simply offering a mutually beneficial way to sell your home which is the quickest and easiest option around.
Interested? Call us now at (214)458-9153 to move on with your life.
article topic: what is a short sale in Rowlett