Hollister CA – A home owner thinking of a short sale recently asked us why she should short sale versus just walking away and letting her lender foreclose on the home. We gave her the normal answer: “It’s much better for your credit.”
That was the first thing that popped into our head. But I knew there are more benefits to a homeowner than simply better credit, so I put together the entire list. Here are the other benefits.
Discover how other sellers successfully executed a short sale to avoid foreclosure by clicking here.
1. The upside-down debt is erased in most cases. If you’re selling because of a financial hardship, then the upside-down debt will be automatically erased in most cases. Is your loan owned or insured by the following agencies: Fannie Mae, Freddie Mac, FHA, and or VA? If you’re short selling because of a financial hardship, their policies state that your debt will be erased.
2. You’re eligible to buy another home much sooner compared to a foreclosure. The most common loan program, Fannie Mae, stipulates that you can buy another home under its program in two years. FHA, a popular low down payment loan program, stipulates that you can qualify for an FHA loan within three years.
3. No Cost To You. That’s right. A short sale costs you nothing. All the expenses are paid for by your lender. That includes the title insurance, any county taxes or fees on the sale, attorney fees, and the real estate agent. If the lender foreclosed on the house and then tried to sell it, it would have to pay all the costs. So why not pay the costs with a short sale?
4. Your credit suffers less damage. Most people think a short sale will be the kiss of death to their credit. That’s the one big advantage of a short sale over a foreclosure.
Upon completion of the short sale, your credit score will drop between 50 and 100 points. However, it will rebound fairly quickly. The other benefit is that you will have less debt. (A lot of debt hurts your credit score.) You will have a lower debt-to-income ratio, which will boost your credit.
In a couple years your credit will be back to normal, and you can buy another home. In addition, anything and everything bad on your credit can be fixed through the dispute process.
5. You can often rent a comparable house for less than your former mortgage payment. In one example, a homeowner in foreclosure found a larger home. It even had a fenced backyard for his kid and a garage. His prior mortgage payment was $1500. He rented the nicer, bigger house for $850 a month.
6. You avoid the humiliation of a foreclosure.
7. You don’t have to pay rent during the short sale process. A short sale can take up to six to nine months. Not all of them do, but some do. If you aren’t concerned about your credit, then you can stop making your mortgage payments during the short sale. You can use the savings for the deposit on a rental.
Thinking about a short sale? I can help you short sale your property so you can move on with your life. Send me an e-mail at israel@ighomes.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (831) 636-8858.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification?Our Hollister loan modification guide will show you how to reduce your mortgage payment, keep your home, and get back on your feet. Send me an e-mail to israel@ighomes.com to request a Free Copy.
Or, click here to request a copy.
Thanks for reading this.~Israel Gonzalez.
Israel is a Real Estate Agent at Beale Properties.
Phone: (831) 636-8858. israel@ighomes.com.
View My homes for sale at www.bestREOhomes.com.
Israel Gonzalez specializes in loan modification assistance and short sales in Hollister California. Hollister Loan Modification Help, Hollister Short Sales. Hollister Short Sale Realtor Hollister CA Short Sales. Hollister Realtor.
Important Notice
Israel Gonzalez, Beale Properties, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Gonzalez’s personal views and do not reflect the views of Beale Properties.
This information on “Seven Ways You Benefit from a Hollister Short Sale” is provided as a courtesy to our readers to help them make informed decisions.
