Let’s discuss a short sale and how it can benefit you as a homeowner here in Paducah and Surrounding Areas.
If you’re thinking this statement about yourself for your home… that is great!
In this article we’ll dive into that so you as a Paducah and Surrounding Areas KY homeowner can tell what your options are during foreclosure or if your home mortgage is about to be what we call underwater.
What is a Short Sale and How Does it Benefit You?
What is a short sale you ask? Well. Glad you did. A short sale is a sale of your property for less than what you owe on it. A short sale can be a smart way to mitigate (to make less severe or less painful) foreclosure (here’s a great definition of what a foreclosure is in case you’re not sure) on a mortgage, while it might be hard to achieve in today’s market, there can often turn out to be an easier way to clear any remaining debt from a loan.
Short sales used to be really common in the market a couple years back when the flood of foreclosures hit the Paducah and Surrounding Areas area… but as foreclosures have slowed down and home values have climbed back up a bit… lenders are just a little less likely to offer a short sale as an option as they used to be (but they are still doing a lot of them!).
Here are a few reasons you may want to consider short sale on your Paducah and Surrounding Areas home
1. You Avoid Foreclosure And The Harmful Effects Of It
The best benefit of short sale is that you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt that you cannot afford.
Foreclosure can cause various financial issues, starting with the trouble of getting a new home loan because a foreclosure typically stays on your credit report for about 7 years.
Renting can also become harder because your credit score gets affected, and you often need to tell about a foreclosure when you apply to rent a place. Foreclosures can take a long time (up to 7 years, like I mentioned earlier), meaning you might have to wait for years before you can even get approved for a new mortgage.
2. Credit Worries
With a foreclosure on your record, you will face all kinds of ramifications with your credit. Buying a car and renting a house may be impossible through the normal bank loan routes.
If you work with money at your job although unlikely you could even face termination if your employer puts a lot of stock in that kind of thing (most employers won’t but just as a warning it has been done before).
A short sale relieves the debt that is left over from what is owed on the mortgage, letting both the bank and the seller move on. A short sale is also way easier on your credit score, which can allow a homeowner the ability to recover in the long run. Your credit report will display a “pre-foreclosure” status, and this will only have a small impact on your credit score when compared to a full-blown foreclosure.
3. Buying a New House
Like we said above. A foreclosure on your credit can last for a long time, making it impossible to purchase a mortgage again for up to 7 years. This can also make it hard to even rent because rent is usually based on your credit now days.
A short sale can give the seller some flexibility, and some banks might even let you apply for a new home loan in just as little as 2 years after the sale. It also increases your chances of getting a mortgage approval compared to if you had went through a full foreclosure, thus helping you get back into a home and on your feet sooner.
Again, this all depends on the actual bank / lender you’re working with… so if they’re giving you a hard time a year or two after a short sale… it might be better to shop around and find another bank that will work with you.
4. Usually No Fees Involved
A possible advantage of a short sale is that it often doesn’t come with any fees from the bank. The bank’s main goal is to remove the outstanding loan from its records. If it can be proven that your home is “underwater,” meaning you owe more than the house is worth, and there’s a risk of you abandoning the property, the bank just might prefer to negotiate a short sale instead of going through the expensive foreclosure process.
With a foreclosure, your mortgage lender may tack on extra fees and that can only make the damage worse.
This is vital to remember. Make sure to check with each consultant before you decide to work with a real estate agent or firm to help with the foreclosure because some consultants may charge a fee for their services.
Our company, Clayton Buys Houses may be able to guide you in the right direction on how to give yourself the best shot at a bank approving a short sale with your Paducah and Surrounding Areas area house… so connect with us by calling (270) 551-2171 or shoot an email to us through our contact page here.
5. Getting a Short Sale – What You May Need To Provide
You’re going to need to show the bank evidence that you can’t make your mortgage payments and that you have tried everything you can to be on time. Such as contacting them to make arrangements for payments or asking them to refinance to get a lower payment. This can be a long process and really challenging, so it’s a good idea to seek out a local real estate attorney who has experience with this type of legal matter to help you out.
If you don’t know who to contact or where to turn to see if a short sale may be a good option for you… get a hold of us. These are the kinds of things we can help with, so the burden isn’t solely resting upon you.
We will not charge you a thing to discuss your situation with you and let you know your options.
And we can even give you guidance and pointers at absolutely no obligation to you.
Occasionally, we can handle the work for you or even better if you’re wanting out, we can possibly purchase the house from you to help you escape from that mortgage burden. This might be a wise choice for you to consider.
We buy Paducah and Surrounding Areas houses. This is what we do, and we also work with home sellers like yourself who are having troubles getting out of your house the traditional way… or who can’t (or don’t want to) go the usual route of listing with an agent.
Get a hold of us at anytime and on several different platforms to discuss your situation. We’re here for you!
Or, 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 within 24 hours. At least that way you know whether that is the right option for you or not.