The Benefits of Short Sales in Maryland
1 year ago Rosie Foster Comments Off on The Benefits of Short Sales in Maryland
Many people think that, once they find a perfect home, everything will work out from there. However, it is not always the case. You never know what life will bring, and what will happen in the future. Unfortunately, after a few years, even decades, homeowners find themselves in severe financial problems.
After an extended period, they are not able to pay their mortgage anymore. The primary reason for this situation is a loss of income. Because of it, individuals are not able to make their mortgage payments. When this happens, they need to start looking for other options, to avoid foreclosure process and getting evicted from their houses.
The first thing people do is trying to sell their homes. However, they eventually realize the housing market has gone down, and that they won’t be able to get the money back. If you ever find yourself in this situation, your best option is a short sale. It is when a homeowner agrees to sell his house at a price lower than the mortgage amount he currently owes. A lender needs to agree with this amount. This way, expensive foreclosure proceedings will be avoided. If you are thinking about this solution, you should be familiar with basics of a short sale.
Short sale benefits
The primary advantage is that you will be able to stay in your home longer than if you were going through foreclosure. This period can range from one to six months. During this time, you will find a buyer and have the lender approve the transaction. When it comes to quite expensive houses, this process can take a couple of years.
The reduction of your credit rating will be between 100 and 150 points, as opposed to 200 to 300 as with a foreclosure. The score damage varies, depending on your rating before the start of the short sale process, and on late payments.
Covering mortgage payments on time when the short sale starts also has its benefits. You will be able to purchase another home straight away with FHA loans, or a month later with FNMA. However, the previous lender has to forgive the deficit due on their loan. It is a vital advantage for families who want to stay in a house instead of renting an apartment. If you want to choose this solution, contact Maryland Short Sale Company LLC.
Additionally, you have the control of the sales process. In the case of foreclosure, a lender can evict you at any moment. You won’t have any influence on the timing to get out of your property. With control over it, you can stay in your house longer than with the foreclosure.
Do you qualify for a short sale?
If you want to pick this alternative, you need to fulfill some requirements. The unpaid balance of your property must be lower than the home value itself. Also, your loan should be in or nearly in default. If your mortgage payments are current, most lenders won’t consider this solution. You must be able to prove to the bank that you can’t afford to pay the difference between the sale price and the balance due. Additionally, if you have assets, your lender probably won’t agree with this alternative. If you think you don’t know enough, go online for more information. After that, think about your situation carefully, and choose the most suitable solution.