What is a Short Sale Process?
When you fall on difficult economic times or experience a severe financial reversal, you might find that you are no longer able to afford your current lifestyle. Some downsizing may be necessary, and this could include the possibility of moving to a smaller and more affordable home. In the process, you might run into a difficult problem that is relatively common in today’s economic environment. You may want to sell your home, but you also might owe more on the mortgage than the house is worth. If you are facing such a problem, you can consider the possibility of a short sale.
By this point, you might be asking yourself, what is a short sale? In a nutshell, it is a sale that takes place when your home is sold for less than it is worth. This may seem like a fantastic idea for those who are facing foreclosure, but it is essential to understand more about the process and the potential pros and cons that surround this possibility.
First of all, we will discuss the process in more detail. Once you miss payments on your mortgage, you will start receiving letters that warn you of the possibility of default. If you continue to lose payments, you will go into default, and you are now at risk for foreclosure. For instance, you can talk to the short sale realtor in San Diego about the possibility of getting some short sale help. It is important to work along with them because they will have to approve the process.
If you are in default and the lender agrees to it, the short sale process can begin. During the process, you will likely continue to live in the home and will be responsible for maintaining it during that time. This is very important to remember. Unfortunately, many people who go through foreclosure will trash the house out of bitterness and frustration. It is vital that you take care of the house as if it were still your own. You can live in it without paying the mortgage in most cases, so take advantage of that time to put some money aside. Once the sale takes place, you will turn the keys over and begin living somewhere else.
The benefit of a short sale is that it can get you out from under the burden of a mortgage that you can no longer afford. Also, the bank benefits because they are also relieved of some of the financial issues that would have resulted from a long, drawn-out process of foreclosure. That doesn’t mean, however, that there aren’t some potential issues.
A short sale can save your credit and give you a fresh start. In some cases, however, the lender may still come after you for a deficiency judgment, and you would then be responsible for paying the difference. This is something that needs to be checked into in advance. As long as you make the right decisions and look at all of your options, you might find that a short sale is the best choice for you.