A short sale can be used as a way of avoiding foreclosure. However, some homeowners don’t realize that they have a viable option for avoiding the credit issues and other troubles that come with foreclosure.
If you want to know more about short sales in Pembroke Pines, Redhead Realty can help. We specialize in short sales and foreclosure avoidance.
What Are Short Sales?
In simple terms, A short sale is the process of selling a home for less than what is owed on the mortgage, with the lender’s approval. A short sale consists of a cash buyer (Redhead Realty) making an offer to your bank to buy the property for less than what you owe. If you don’t have equity, and if your property needs repairs, the property would not be worth the amount owed on the mortgage. If you owe more than what your property is worth, a Short Sale is the best way to AVOID Foreclosure.
Why Do Short Sales Work to Avoid Foreclosure?
You are probably wondering how a short sale can get you out of foreclosure. The process is rather simple. The sale of your home results in less than what you still owe to the bank. For instance, you might owe $150,000 on your mortgage. However, you may qualify for a short sale at $110,000. The bank might agree to take the money from the short sale to pay off the remaining balance on your loan.
Although the bank isn’t getting everything they are owed, they are likely to accept a short sale. This is because the foreclosure process is long and expensive. To avoid all of the wasted time and money, the bank might prefer a lower payment. They get money for the home, yet they don’t have to deal with the hassle of foreclosure.
Who Can Do a Short Sale?
It’s important to realize that not everyone can qualify for a short sale. Only some individuals qualify for this type of sale. Furthermore, not all lenders will accept short sales.
Typically, a seller must be able to demonstrate proof of their hardship. You cannot simply say that you need a bigger home and aren’t happy with the market value of your current home. If you don’t have any evidence of your hardship, your short sale will not be approved. You must have proof that you lost a job, went through a divorce, or had some other type of hardship. On top of that, you need to be able to show that the change in circumstances has made it difficult to make your mortgage payments.
Evidence of this can come in the form of a paper trail. For example, you can show pay stubs, tax returns, and bank statements.
Another requirement for a short sale is that you owe more than your home is worth. If you owe $50,000 on your home and your home is worth $125,000, you do not qualify. If you are in that situation, the best course of action would be to sell the property to a cash buyer, such as Redhead Realty, and receive equity back on your home.
How Can a Short Sale Help Me?
There are many benefits you can experience by completing a short sale. You could benefit in some of the following ways:
AVOID having a Foreclosure on your record
There aren’t many ways to avoid foreclosure. If you don’t make a short sale, you might be unable to stop the process. As a result, you could lose your home, lose money, and end up with the other long-lasting effects of foreclosure.
Saves your credit
Whether you go through foreclosure or use a method other than a short sale to prevent foreclosure, your credit is likely to suffer. This can make it much more difficult for you to move on with your life. For instance, you may not be able to find someone who will rent a home to you. You could also have trouble obtaining a job.
If you do a short sale, you can save your credit. Making the sale prevents the foreclosure process from going forward. Therefore, it doesn’t make your credit any worse. You won’t have to spend years building your credit back up.
Full Waiver of Deficiency– Never pay on your mortgage again! Bank will not pursue loan shortage!
You may be able to purchase a new home immediately. After you sell your home, you don’t have to wait years before you make another purchase. If you use bankruptcy or a similar method to avoid foreclosure, you may not be able to buy a home for several years. This means you’re left paying high rent fees and living without the stability of owning your home.
No Repairs Necessary!
Selling a home usually requires you to do some work. After all, you need to appeal to buyers and convince them that your home is the right home for them. Often, this means making expensive repairs. You might need to redo your roof, replace the front door, or make other expensive renovations.
When you do a short sale, you have a buyer ready to take your home out of your hands. As a result, you don’t need to put more money into your home. You also don’t need to put any effort into it.
More time in your home while the bank considers the short sale
Short Sales usually take 4 to 6 months to get approved. While you wait for that approval, you can remain in your home. You have more time to figure out where you will go after the short sale.
If you allow foreclosure to happen, you can be evicted from your home almost immediately. This puts you and your family in a bad situation. If you don’t have any plans for housing, you could end up on the streets.
Short Sales Vs Other Foreclosure Avoidance Tactics
Many of the other foreclosure avoidance methods come with serious consequences. A loan modification is a prime example. If you are approved for a loan modification, you don’t get rid of your debt. Rather, you add to it. While your home will no longer be in preforeclosure, you will still have a problem. You owe all of your previous debt as well as penalties, interest, and other fees. Sadly, most homeowners can’t overcome this burden of debt. They may never fully own their home after a loan modification.
Another potential option is bankruptcy. However, this can create more problems for you. You still owe on your prior debts. Furthermore, your credit takes a major hit. You may be unable to get loans and it can take years for your credit to recover. In some cases, bankruptcy may not even stop the foreclosure process.
On the other hand, a short sale does not have a negative impact on your life. Once you make the sale, you can move on. You can find a new place to live and you don’t have to watch your credit score suffer. For many, a short sale is the best option.
The Short Sale Process
- Redhead Realty will start the process by providing the homeowner(s) with a list of documents required by the bank.
- Our short sale team will review the documents for accuracy. Once all are completed, we will provide a purchase agreement for the homeowner to sign.
- We will send the short sale package to the lender to be reviewed.
- Lender will schedule an appraisal of the property and determine the value of your home, thus beginning our negotiations.
- Once the final price is agreed upon, the bank will send us the Approval of Short Sale.
- Homeowner now has another 30-45 days to relocate.
- Redhead Realty has now purchased the property. The homeowner is no longer responsible for the mortgage and successfully AVOIDED Foreclosure!
**If the homeowner was approved for HAFA, the homeowner will walk away from the closing with a check for $3,000 to $9,000. Ask us how you can get approved for a HAFA short sale!
Why Should I Contact You Regarding My Short Sale?
In Pembroke Pines, affordable housing is hard to come by. But affordable housing is hard to come by. This leaves many homeowners living with a risk of foreclosure. If you’re one of the many who are struggling to pay your mortgage, we can help you.
Redhead Realty and our partners have a 99% short sale success rate, meaning we keep homeowners OUT of foreclosure. We also have every component needed to ensure that your short sale gets approved and is handled with professionalism. These components include listing agents, negotiators, title companies, etc. We will offer you a permanent solution!
*P.S. All of our services are FREE!