Thinking of a Short Sale? What You Need to Know.
June 28, 2021
Right now, homes are selling at a fast pace. Many people are getting over their asking price for their homes because there is a shortage of homes on the market. Yet, with the fall-out of 2020 still lingering, many people who have lost their jobs and sources of income have defaulted on their mortgage payments. Homeowners who are underwater on their mortgage may explore the idea of a short sale process to protect their credit.
While this may sound like an ideal option, it is important to remember that if something sounds too good to be true, it probably is. There is no way that a real estate agent can guarantee sellers that their credit will be protected through a short sale. Most people who are considering a short sale are in default on their mortgage payments; therefore, their credit will suffer. You need to be aware of a few things before you jump into a short sale.
First of all, what do you get? What homeowners get out of a short sale is the ability to maintain some sort of dignity because they do not have to go under foreclosure. There is a definite stigma attached to “foreclosure,” and Fannie Mae guidelines make it impossible for those who enter foreclosure to purchase another home for 5-7 years. Yet, those who can sell through a short sale can generally buy a home after 2 years, depending on their credit report.
Secondly, a short sale is often the opposite of it’s name – it is a drawn-out process that can take months from start to finish. It can take months for a lender to approve a homeowner’s request to begin the short sale process. Homeowners must be willing to provide extensive documentation and examination into their finances and credit history. Homeowners must also be willing to accommodate potential buyers.
George R. Belche, Attorney at Law, wants to help homeowners make informed decisions regarding short sale, foreclosure, and bankruptcy. As an experienced bankruptcy attorney, George R. Belche is specifically qualified to counsel you on the best decisions for your financial future.
George R. Belche, Attorney at Law
189 W Pike St, #103
Lawrenceville, GA 30046