If you’re facing the possibility of foreclosure and bankruptcy, many people may suggest offering your home for short sale. Short sales are negotiated deals with your lender that allow you to sell your home for a lower price than what you owe on the mortgage. In exchange for the home being sold, lenders will typically forgive underwater borrowers for the money that is owed.
This, in turn, means that you no longer have to worry about paying a mortgage that is too expensive for you. Further, you will be able to start working on putting your budget together in a way that will allow you to avoid bankruptcy.
For many people, a short sale can be the saving grace that they need in order to rebuild their lives and their credit score. However, it’s not for everyone. At times, it may not even be possible. Here are some things that may impact whether or not a short sale is even feasible in your situation.
- Short sales don’t happen in short order. It can take months, or more, for a short sale process to be completed. If you’re low on time, a short sale may not be possible.
- Your mortgage isn’t your largest debt. If the main debt that you have problems with is not your mortgage, then it would often make more sense to work on negotiating that debt instead of your home payment. That way, you might be able to keep your home.
- If your home lost a lot of value due to the real estate bubble bursting, the bank might not accept a short sale at the price that you want.
For some families, a short sale can be the answer to prayers. For others, a short sale is not always the miracle panacea to real estate finance problems that people often assume it is. In order to make sure that a short sale is actually the best move for you, contact an experienced real estate lawyer.
Joel R. Spivack Esq. will review your situation and help you decide the best way to proceed with your debt situation. If a short sale isn’t in your best interests, Mr. Spivack may be able to negotiate with your creditors. Contact him today.