How a Short Sale Can Help Homeowners
Failing to make mortgage payments as agreed could have significant consequences. In some cases, it could result in the lender foreclosing on the property. However, you may be able to help yourself by asking the lender to agree to a short sale. Let’s take a look at what a short sale is and how you can benefit from it.
Short Sales Are Better Than Foreclosures
While a short sale can have a negative impact on your credit score, it may not be as bad for your credit as a foreclosure. In a short sale, the lender is getting some or most of the balance owed on the home. Furthermore, the account may be referred to as paid as agreed or with similar language on your credit report. This can make it easier to get another home loan relatively quickly. It can also be helpful when searching for an apartment, applying for a car loan or any other situation that requires a credit check.
Why Would Lenders Agree to a Short Sale?
A lender generally agrees to a short sale when it believes that it is faster and easier than going through the foreclosure process. Short sales can be completed within months while a foreclosure can take years. As the homeowner is motivated to sell for as much as possible, there is less of a chance that he or she does anything to ruin the property. Therefore, the lender may feel as if this could be its best opportunity to limit a potential loss.
Don’t Delay When Trouble Arises
If you don’t think that you can keep up with your mortgage payment, contact your lender immediately. Doing so may help you find a solution that minimizes the potential hit to your credit score and bank account. In some cases, a mortgage company in Las Vegas could find a solution that makes a short sale or foreclosure unnecessary.