Consider This Before Your Jump Into A Short Sale
November 20, 2019
People get into a heap of financial trouble in various ways. Some people spend their way into debt by living well outside of their means. Others face debilitating medical issues that leave them with piles of unpaid bills. Still, others face a job loss, divorce, or just bad luck that leaves them in the position of considering bankruptcy. Often, one of the last decisions that people think about is selling their home via a “short sale”.
Basically, a short sale is when a homeowner sells his or her property for less than the amount owed on the mortgage. The seller is “short” the cash needed to repay the mortgage loan fully, but selling the home gets them out from under the debt.
Short sales are not always easy to maneuver into. Mortgage companies must agree to accept less than what is owed on a loan, and not all lenders are agreeable to a deal like this. However, if you are a homeowner who is pushed to the brink by personal financial troubles, there are things to consider before jumping into a short sale.
Selling a home as a “short sale” is not as easy as listing a home to sell. When listing a home, you set the price, you can negotiate price, and a sale is made. A house under short sale status must receive approval from the lender to accept a deal. Remember, the lender is losing money – and they want to make sure to collect as much money as possible. Some banks prefer to pursue a foreclosure because they will assume ownership of the property and may receive bailout money. You may have to plead your case to your mortgage lender. The lender will generally not accept a low-ball offer. The house will be appraised, and it will be expected that a fair offer will be given for the home. This entire process can take a few months for a lender to approve a buyer’s contract, so a seller in financial trouble must understand the process.
George R. Belche, Attorney at Law, believes that helping clients make an informed decision is the best assistance he can give. As an experienced bankruptcy attorney serving in the Greater Atlanta area, George R. Belche is distinctively suited to counsel you on your options for future financial success.
George R. Belche, Attorney at Law
Lawrenceville, GA 30046