What is a short sale and how does it benefit you here in Hampton?
This is a good question! You as a home owner in Hampton Virginia we can help decipher your options during foreclosure or maybe you mortgage is underwater.
What is a Short Sale and How Does it Benefit You?
Short sale is a financial transaction that can mitigate the remaining balance on a mortgage. It can help prevent foreclosure. If you are not sure what this is (here’s a great definition of what a foreclosure is). It may be hard to do this in today’s market, but it can still work, providing it can be approved by your bank. In essence, some time ago when foreclosures happened more often in Hampton, short sales were more common. Less likely for this to be a frequent occurrence today, as home values have climbed, but again, sort sales do happen still.
Here are a few reasons you may want to consider short sale on your Hampton home
You Avoid Foreclosure And The Harmful Effects Of It
A short sale will help you avoid a foreclosure on your house. In this process, the lender accepts less than what is owed on your mortgage, so you will not have any remaining debt that you can’s pay back.
Why is foreclosure bad? For starters, it will seriously damage your credit and prevent you from obtaining a new home loan for a while. Such event stays on your credit for up to 7 years.
In case you are not aware, if you try to rent an apartment, you will still need to qualify with credit and you may not be allowed to even rent a place. This can become an issue as you may need to settle for less-than desirable rental agreements or locations of where you can rent.
So, foreclosure will be a major “ding” on your credit. You will have challenges renting a place to live or buying a car or any other significant purchase that requires a credit check.
If you job is related to money, you may even lose your employment. Well, many employers won’t do this, but it has happened in the past.
So, a short sale relieves the debt that is left over from what is owed on the mortgage, so this concludes the business between you and the bank and the remaining debt is considered satisfied. Your credit will get some damage, as it will show a pre-foreclosure status, but it will be much less negative impact in comparison with a foreclosure, so you will be able to recover your credit and buying ability much faster.
Buying a New House
If you go into a foreclosure, your credit will be damaged and you won’t be able to get a new loan to buy a house for 7 years. In contrast, if you do a short sale, your credit will be dinged more lightly and you will likely be able to get a new loan approximately 2 years later, depending on the bank rules. Still, with a short sale you will be on a faster track of recovery for your buying ability and life. Just remember, if you go through a short sale and you have a hard time obtaining a loan even 2 years later, just do some shopping around with other financial institutions.
Usually No Fees Involved
With a short sale, usually there are no fees associated with the bank that you have to pay That’s a good thing, since you are dealing with financial challenges already. If you owe more than what your house is worth, that can make it more likely for the bank to be willing to approve a short sale and get the note off their books, basically to cut their losses and let you off the hook in the process.
In contrast, a foreclosure may incur extra fees from the bank to you, which will make the matters even worse for you. Foreclosures also cost the banks significant amount of money, but sometimes they do not have another choice.
Please note, if you are facing foreclosure and you want to use the help of a real estate professional or a company, they may charge you some fees. Make sure you discuss this in detail before you hire anyone to help you with a foreclosure process with a bank.
Our company, Coastal Edge Homebuyers may be able to guide you in the right direction on how to get the best information and prep to increase your chances of the bank to approve a short sale for your Hampton house… so connect with us by calling +1 (757) 414-7117 or send us an email here contact page here.
Getting a Short Sale – What You May Need To Provide
In order to get a short sale approved, you will need to provide some documentation, such as proof that you are unable to pay your mortgage. You may want to use the help of a real estate attorney experienced in this topic in your local area.
In case you are unsure where to start, give us a call and we will help you find the right resources for your situation.
We will not charge you a penny to offer you information and contacts to get in touch with.
In some cases, we may be even able to help you depending on your situation. We could possibly buy the house from you an avoid pre-foreclosure or foreclosure altogether. If we are able to take over your payments, this will save your credit. There may be other options for you, just let us know and we will go over them with you.
We buy houses in Hampton and we often work in home sellers in similar situation like yours or other difficulties that may make it impossible or undesirable to list your house with a real estate agent. Just in the last couple of months we spoke with several clients in a tough financial situation where they owed a significant amount of mortgage and we were able to help several of them and they were super happy with the alternative solutions we have.
Get a hold of us anytime to discuss your situation. You are not alone! We will get you the information you need so you can sleep better and make a wise decision.
If you want to see what we can offer on your house… click the link below and fill out the form on the next page. We’ll make a no-obligation cash offer to you immediately after we evaluate your house. At least that way you know whether that’s an option for you or not.