Consider this: you’re behind on your mortgage with no way of catching up, and you might be close to foreclosure. You’re also worried that you might be out on the street with a big blot on your financial record. But amid all these straits, there might be a silver lining: a short sale.
Keep reading to learn more about short sales in San Antonio!
What’s a Short Sale?
A short sale describes the process of selling a property for less than you owe on the outstanding mortgage. Your lender may permit a short sale if you can’t maintain your mortgage obligations. That way, the lender will recoup any potential losses resulting from delinquency, and you can avoid foreclosure.
How Do Short Sales Work?
For a short sale to work:
- You Must Prove Financial Hardship
You have to prove that you can’t keep making mortgage payments and will ultimately default. Some examples of hardship include divorce, reduced income, bankruptcy, medical emergency, or death of the income provider.
- The Lender Has to Agree
No short sale can occur without your lender’s approval. The lender must sign off on a decision to execute a short sale before the process can begin.
- Home Should Have Declined in Value
In many instances, short sales go through because the market is faltering, and the property value has dropped accordingly. In such situations, you sell the home for less than you took out a mortgage for.
What are the Pros and Cons of Such a Sale?
The Pros:
- Credit Score Recovery: Unlike a foreclosure that stays on your credit report for 7 years, you can buy a home almost immediately after a short sale.
- Peace of Mind: You can avoid the emotional turmoil of foreclosures. Besides, you’ll often be allowed to stay in the home while it’s being sold.
The Cons:
- Walking Away with Nothing: Unlike a regular sale where you get the proceeds, a short sale’s proceeds go to your lender to recover the debt.
- Credit Score Damage: While not as long-lasting as foreclosure damage, a short sale will knock some points off your credit score.
Need Help with Your Home in San Antonio? Call the Experts!
A short sale doesn’t necessarily mean selling your home at a throwaway price. Call our experts today and let us help you with your short sale in San Antonio to ensure that you get the most out of your home sale!
