What is a short sale and how does it benefit you here in Savannah?
If you’re thinking that question about yourself… great question!
In this article, we’ll dive into that question so you as a Savannah GA 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.
After the flood of foreclosures hit the Savannah market a few years back, short sales were typically offered as an option, but now that foreclosures have slowed and home values have climbed again, 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!).
Here are a few reasons you may want to consider short sale on your Savannah home
You Avoid Foreclosure And The Harmful Effects Of It
The best benefit of short sale is that you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt that you cannot afford.
When a home is foreclosed, you may have difficulty getting a new mortgage because the foreclosure stays on your credit record for up to seven years.
You will find it more difficult to rent an apartment since your credit score will be affected and you will have to disclose a foreclosure on your rental application. You may also be forced to wait years before even qualifying for a new mortgage due to foreclosures (up to 7 years as mentioned above).
Getting a Short Sale – What You May Need To Provide
It is necessary to provide the bank with proof that you are unable to pay your mortgage. It is recommended that you find a real estate lawyer in your area who has experience dealing with this type of law to assist you with this.
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… get a hold of us.
We won’t charge a thing to discuss your situation with you and let you know your options.
And we can even give you guidance and pointers at absolutely no cost or obligation.
Sometimes we’re actually able to handle the work for you or even buy the house from you to get you out from under that mortgage and you may want to consider that as a viable option.
We buy Savannah 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.
With a foreclosure, you face all kinds of ramifications with your credit. Buying a car and renting a house may be impossible through the normal bank loan routes.
If you work with money at your job you could even face termination if your employer puts a lot of stock in that kind of thing (most employers won’t but it has been done before).
By short selling a house, you relieve the bank and seller of the debt they owe on the property. Short sales can also help homeowners rebuild their credit score, allowing them to get back on their feet in the long run. If you are faced with a foreclosure, your credit report will only indicate that you are in pre-foreclosure. This will only affect 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 up to 7 years.
The bank may allow new home applications between two and three years after a short sale filing depending on the seller’s circumstances. As a result, a mortgage lender will be more inclined to approve your loan than if you’d had a full foreclosure.
Again, this depends on the actual bank and lender you’re working with. If they’re still giving you a hard time a year or two after a short sale, shop around and find another bank to work with.
Usually No Fees Involved
One 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 books… and if it can be proven that your house is “underwater” (you owe more than your house is worth)… and you’re at the risk of walking away from the house… the bank may rather work out a short sale instead of going through a costly foreclosure.
If your mortgage lender forecloses on your home, they may add extra fees that only compound the damage.
In some cases, real estate consultants charge for their services in helping you deal with your bank during the foreclosure process, so make sure to check with them before hiring an agent or firm.
Our company, 32Homes LLC may be able to guide you in the right direction on how to give yourself the best shot at a bank approving a short sale with your Savannah area house… so connect with us by calling (912) 421-9907 or shoot an email to us through our contact page here.
Get ahold of us anytime to discuss your situation. We’re here for you!
Or, if you want to see what we can offer on your house – 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. Click the link below and fill out the form on the next page.