Short Sale: Alternative to Foreclosure
While some people are starting to think of foreclosure as a smart financial planning move, others are still very concerned. With the economy in question, there are many homeowners who are concerned that they will not be able to continue making mortgage payments. Add this worry to the fact that many of the expected foreclosures in the coming months are likely to owe more on their homes than the home is worth (what with falling home values across various real estate markets), and some just hope that they can sell their home for any amount
This is where the short sale comes in. This is an alternative to to foreclosure. Some mortgage lenders are willing to work with you, allowing you to sell the home for less than you owe. The Tacoma News Tribune explains why some mortgage lenders are willing to forgive some of your mortgage debt:
Sometimes, banks would prefer to cut their losses and avoid foreclosure, which is a costly and months-long process. Plus, banks are in the business of lending money, not collecting and selling homes.
Buying a short sale home
A short sale home can make a great purchase decision. However, it is important to note that it can take months to hammer out an agreement. And usually, before most mortgage lenders will approve a short sale, the home needs to have been on the market for at least 90 days. If you can handle the wait, and the frustration, a short sale home can be a good real estate investment as well, since you are likely to get it for less than market value.
Tags: short sale, alternative foreclosure, mortgage loan, mortgage blog,
real estate investment, mortgage lenders, mortgage debt
May 28th, 2008 at 10:33 am
[…] One of the valid alternatives to foreclosure — after you’ve done what you can to avoid it — is engaging in the short sale. […]
June 6th, 2008 at 11:36 pm
[…] One of the valid alternatives to foreclosure — after you’ve done what you can to avoid it — is engaging in the short sale. […]
August 25th, 2008 at 10:50 am
[…] Motivated sellers (who may need to move quickly, or who are trying to avoid foreclosure with something like a short sale). […]
January 2nd, 2009 at 2:07 pm
[…] of the ways that you can avoid foreclosure is to engage in what is known as a short sale. A short sale is basically when you sell your home for less than what remains on the home mortgage […]