Short Sales have become a hot topic recently with homeowners in distress and mortgage companies.  Short Sales have been around for many years and have worked well to avoid foreclosure.  In today’s Sub-Prime mortgage crisis, it is becoming a primary means of elliminating a bank debt. 

Question:  What is a Short Sale?

Answer:  A Short Sale occurs when a homeowner owes more on their property than the property is actually worth, but their bank agrees to accept less than what is owed as payment-in-full.  In other words, the bank is willing to take a discounted pay-off in order to avoid the foreclosure process.

Question:  Why are banks willing to do a Short Sale?

Answer:  Because the alternative is foreclosure, and the foreclosure process is usually far more expensive than the discount the bank takes and a Short Sale.

Question: What are the benefits for the homeowner is a Short Sale?

Answer:  The primary benefit to a homeowner who participates in a Short Sale is avoiding the devastating effects of a foreclosure on ther credit.  It the loan is VA quaranteed, the successful completion of the Short Sale protects their VA eligibility for future VA mortgage loans.

Question:  What is the impact on the homeowner’s credit for doing a Short Sale?

Answer:  A Short Sale is reflected on the homeowner’s credit report as something to the effect of, "Discounted Payoff, Paid-in-Full".  A Short Sale is far less damaging to the homeowner’s credit than a foreclosure of Deed-in-lieu of foreclosure.

If you are behind in your mortgage and possibly facing foreclosure, a Short Sale can be your answer.  To find out if a Short Sale is right for your, visit www.AvoidBankForclosureNow.com or call Bonnie at 770.606.0054.

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.