Are you behind on your mortgage payments? Is the value of your home less than the balance on the mortgage? If so, you may be on the verge of a short sale. While a short sale is not as detrimental to your credit score as bankruptcy or foreclosure, it can still hurt your credit and possibly even keep you from buying a home. Plus, you may still owe the remaining balance on the mortgage once the sale is complete.
You may currently feel that your only option for getting out of the mortgage is to agree to a short sale. In a traditional sale, this may be true. However, there are alternatives to listing your house on the market or settling on a short sale. You can sell your house fast for cash directly to a local buyer in Tacoma, Washington. Selling to a buyer can help you unload the property quickly without incurring selling costs.
Let’s take a closer look at the best way to avoid a short sale.
A short sale in real estate is when a financially distressed homeowner sells their property for less than the amount due on the mortgage. The property buyer is a third party (not the bank), and all proceeds from the sale go to the lender. The lender forgives the difference or gets a deficiency judgment against the borrower. The judgment requires the borrower to pay the difference between the sale price and the mortgage value.
The term “short sale” refers to the home being sold for less than the balance remaining on the mortgage.
Before the process begins, the lender must sign off on a short sale (also known as a pre-foreclosure sale). The lender also needs documentation that explains why a short sale makes sense; after all, the lending institution could lose a lot of money in the process. No short sale may occur without lender approval.
Short sales are lengthy and paperwork-intensive transactions, sometimes taking up to a full year to process. However, short sales are not as detrimental to a homeowner’s credit rating as a foreclosure.
Any type of property sale that is marked as “not paid as agreed” harms your credit score. Even though a short sale hurts your credit score less than a foreclosure, it is still a negative mark against your credit. Therefore, short sales, foreclosures, and deeds-in-lieu of foreclosure should be avoided.
Short sales don’t always negate the remaining mortgage debt after a property is sold. There are two parts to all mortgages: a promise to repay the lender and a lien against the property used to secure the loan. The lien protects the lender in case a borrower can’t repay the loan. It gives the lending institution the right to sell the property for repayment. This part of the mortgage is waived in a short sale.
The main reason homeowners agree to a short sale is to avoid bankruptcy or foreclosure. After months of not paying the mortgage, they undertake a short sale because time is running out, and they can’t sell the house on the market. In other words, a person who makes a short sale is desperate to get out of their situation with their credit somewhat intact.
However, there is a simple alternative to both a short sale and a traditional sale. You can sell your house fast for cash directly to a buyer in Tacoma, Washington. When you work with a buyer, you cut out the real estate agent and do not list the house on the market. You simply undergo a simple three-step process:
Instead of calling a real estate agent or broker, contact a local buyer to schedule a quick walkthrough of the house. It costs you nothing, and there is no obligation to sell. The buyer assesses your property to decide if they want to buy it.
One of the benefits of selling your house to a buyer is that you don’t have to wait to get an offer. In most cases, they will make an offer within 24 to 48 hours of looking at the property. Most offers come in at just under the current market value of the house.
If you agree to the buyer’s offer, the final step is to schedule a convenient closing date. You simply show up and sign the paperwork. The buyer agrees to pay most or all of the closing costs. You walk away with no strings attached.
Before you contact the realtor or list your house on the market, do not pass up the chance to sell your house as-is for cash. Tacoma Cash Offer is here to help you find the simplest solutions to get cash-in-hand quickly without wasting time and money on repairs and closing costs. To schedule a quick, no-obligation walkthrough with one of our local house buyers, call 253-300-2897.