Being a homeowner in today’s economy comes with its drawbacks. Thanks to major failures in the lending industry and major economic downturns that have left thousands without the money required to cover all of their expenses, many people are facing unthinkable options.
If you are currently torn between selling your home, refinancing, or foreclosure, it is time to look hard at your options. Short sales are often preferred alternatives to foreclosure, but are they right for you?
Selling your home can be heartbreaking. Home ownership is a dream that most people have, and when you are able to take ownership of a house it is a wonderful feeling. When you can no longer afford to keep up with your mortgage and refinancing isn’t enough to keep you afloat, you need an alternative. Selling your home through short sale means selling your house for less than you owe and less than the home is worth, but it also means avoiding foreclosure and causes significantly less credit damage.
When you consider selling your home through short sales, understand that you may still be able to walk away with a little bit of extra money. The process isn’t ideal, but instead of foreclosure, the only damage to your credit will likely be a few late payments on your mortgage. This ‘credit ding’ will go away after only a couple of years, leaving you in the position to buy again when your economic situation improves.
Selling your home is never without stress, but short sales can be a good idea when the bank is threatening to foreclose and you need a better option quickly.