Q. What is a Short Sale?
A. A short sale is when the bank agrees to accept less than what is owed on the home. It is the ideal option if you have no equity, meaning you owe more than market value. Even if you have some equity, a short sale could be the right choice for you. Talk with someone who has experience with short sales to discuss your unique situation to find the best options for you. Banks are getting more cooperative, but they won't negotiate with just anybody. A Realtor can get better results than someone without a Real Estate License. Be sure to get one who is designated as a Short Sale & Foreclosure Resource. That means they are trained to help and have experience with short sales.
Q. Wouldn't I always want to keep my property?
A. No. You may find this a foreign concept at first, but if you honestly can’t afford the home you need to find something you can afford. There are many homes to choose from in today's market.
Q. When should a property be given up?
A. The most obvious case occurs with a negative asset - an asset which in reality is a liability. That happens when you owe more than it is worth in it’s current condition and with the speed of sale you would need. Everyone knows that if you need to sell something fast, you’re going to have to sell it for less.
Q. I've sunk almost $20,000 into this house, so I keep it, right?
A. Wrong! Do not throw good money after bad. Imagine that you never owned the property in the first place, what would you pay for it today? If your answer is, "You couldn't give it to me for free, I just don't want it.", then now is the time to let it go. If your answer is, "I can't afford it", then moving on could be the best thing you could ever do.
Q. If I give up this house, how will I ever get a mortgage on a new property or car now that my credit looks so bad?
A. By working with a great team of credit repair professionals and mortgage lenders.
Q. Is it true that if my house is for sale I can stall the foreclosure process while I try to sell the house?
A. While I sometimes see this situation, mostly on properties with serious other problems, don't expect such a plan. Most frequently if you list the property and stop making payments the bank with go forward with the foreclosure. Usually a purchase contract is needed to postpone a sale. If they get within a few days of the foreclosure auction and a firm signed contract with deposit can be confirmed with a closing date less than 30 days away, they will likely postpone the sale to allow the closing.
