Are Short Sales Really the Way to Go?

Short sales scare a lot of stressed borrowers and homeowners because they are unfamiliar with them or they think of them as something similar to a foreclosure. However, they are not to be afraid of and are definitely not similar to a foreclosure. In fact, they are such a preferred form of home sales and buying that “short sales and foreclosure sales account for 13 percent of all sales in third quarter.” (RealtyTrak, 2014)

Though this is a decline in the number of such sales, and reflects some of the lowest figures since 2011, it still demonstrates that thousands of homes are sold via the short sale every quarter. This is usually because the sellers are very motivated; either they have to relocate and are forced to get what they can or they are financially strapped and need to sell before they can no longer afford the home.

However grim either circumstance might sound, the opportunity to do a short sale is incredibly valuable. Not only does it make some of the best homes available to buyers who might not have been able to afford them, but it also helps people struggling financially to begin to rebuild their lives.

The Way to Go

Of course, none of this answers whether or not short sales are the right way to go. There are many naysayers who dislike the short sale process because it can take a lot longer; involves the owner, potential buyer, and the bank in the negotiations; and because it does have negative consequences on the credit of the owner.

However, if you are a “big picture” person, you can probably see that the alternatives are far less appealing. What are the options? Just consider that someone unable to make their mortgage payments can go to the bank and ask for the terms to be adjusted.

This would keep them in a game of catch-up until they had broken even from when they first fell off course with payments. Generally, making a smaller mortgage payment while also paying a bit more to repay missed payments leaves owners in the same financial predicaments and they soon find themselves unable to make the payment.

This same owner might also just skip payments until a notice came from the bank that the foreclosure process had started. While some argue that lets you live rent-free until you are kicked out, few want to live under the stigma and the intense pressures of this scenario.

Diving right into a dialogue about a short sale with a real estate specialist, however, opens up the door to less pressure from the lender and puts a lot of control back into the hands of the owner. While it does have negative consequences on a credit report, these are far less damaging than a foreclosure.

If you feel that you might be quickly approaching a hurtle with making mortgage payments, the smartest route to follow is straight to your short sale real estate specialist’s office. They can help you take control and keep damages to a minimum.

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