Best Practices for Selling Your HouseA short sale can save you from having to go through foreclosure if your circumstances for inability to pay your mortgage are out of your control. Contact a real estate investor to see what can be done.

Keller Texas – Cash House Buyers:A short sale may not be what you had in mind when you decided that you need to sell your house. The way the market is moving along these days, though, it may become an option that you can use, especially if time is critical and you are having trouble selling your house in a reasonable time frame.

Short sales mean that the bank is willing to take a bit less than what you actually owe on your mortgage. You will be responsible to repay most of the mortgage, but they accept just ‘short’ of what you still actually owe. 

Short sales mean that the bank is willing to take a bit less than what you actually owe on your mortgage. You will be responsible to repay most of the mortgage, but they accept just ‘short’ of what you still actually owe. In other words, if your house was worth $400k 3 years ago but is only worth $320k now but you still owe $330k on your original mortgage loan, the bank would not be able to collect their entire $330k from you even if you sell the house to pay them off. No one is going to pay you more for your house than what the current market value dictates.

Banks, who are well aware of the market and how far values have dropped over the last few years, have found that they must be somewhat flexible if they want to collect at least most of what is owed to them. Collecting $320k when you owe them $10k more is far better than if they go through the foreclosure process, which is long and expensive for them. After the foreclosure process is complete, there is usually an auction that may bring in far less than what you might be able to give them on a short sale. So that explains why banks are often willing to approve a short sale even if it nets them less than originally owed.

  • Banks, who are well aware of the market and how far values have dropped over the last few years, have found that they must be somewhat flexible if they want to collect at least most of what is owed to them.
  • There are conditions to being approved by a lender for a short sale.
  • They don’t count excessive credit card debt as a good reason to accept less from you.

There are conditions to being approved by a lender for a short sale. You can’t apply for one on the basis that you can’t pay your mortgage because you’ve over spent your income. They don’t count excessive credit card debt as a good reason to accept less from you. They do, however, grant short sales to those who have situations out of their control that have caused them hardship. Examples are job loss, accident or illness that affects the ability to work, or a death in the immediate family. You’ll want to see whether you qualify before succumbing to foreclosure, as a short sale is better for your future credit rating.