Should I Short Sale My Home?
Short Sale Q&A…click here
What Is A Short Sale?
Do you need to sell your home, but you owe more than it is worth? Are you stressed out about mortgage payments? Do you think your only option is a foreclosure? Relocating and want to be able to walk away from your home? Want to know how to receive $3,000 towards moving and relocating expense? Start the Short Sale Process Not a Washington Home owner? I have agents across the country ready to assist you.
The Complete Guide To Short Sale
A Short Sale is a sale of real estate in which the proceeds fall short of the balance owed on the loan. When the borrower can’t pay the mortgage loan on their property, the lender may decide that selling the property at a loss is better than proceeding with a foreclosure. This agreement doesn’t necessarily release the borrower from the obligation to pay the remaining balance of the loan, which is known as a deficiency, but many times it is possible to negotiate no promissory note or deficiency judgment.
- Typically, after 2 years, a homeowner whose home is sold in a short sale will qualify for an FHA loan.
- There is no question on a mortgage application regarding whether you’ve ever done a short sale.
- Late payments will show up on your credit report but short sales are usually not reported to the credit bureau.
- Ask your lender whether they will report the short sale as “paid less on a settled account” vs. “settled/paid in full” as this could affect your credit score.
- Usually, it will take approximately 18 months of consistent, on-time credit payments to restore your credit score.
In conclusion, a Short Sale is far less damaging than a foreclosure. The lender will often allow a short sale if they feel the financial loss is lower than that of a foreclosure proceeding. As a borrower, you can avoid having a foreclosure on your credit report and the short sale process is typically faster and less expensive.
