If you are facing foreclosure or some other kind of distress, there are options available to help. One of the options that may be available to you is a short sale. In this article, we want to share some information about short sales so you as a Kansas City home owner can utilize it as an option instead of foreclosure.
If your house is needing some repairs, but you don’t have the cash or the equity to to make them, a short sale may be your real estate solution in Kansas City .
What is a Short Sale and How Does it Benefit You?
In real estate, a short sale refers to a transaction where a homeowner sells their property for less than the outstanding mortgage balance. It is typically pursued when the homeowner is facing financial distress, unable to keep up with mortgage payments, and owes more on the loan than the current market value of the property. While short sales can be complex and involve negotiations with lenders, they offer significant benefits to home sellers. Firstly, a short sale allows sellers to avoid foreclosure, which can have long-lasting financial and credit repercussions. Instead of the foreclosure process, sellers have the opportunity to negotiate a settlement with their lender and avoid the negative impact on their credit history. Additionally, short sales provide sellers with a chance to relieve themselves of the financial burden and start anew. By selling the property at a fair market price, they can reduce their debt obligations and potentially walk away from the transaction without a deficiency judgment. Short sales offer a lifeline for distressed homeowners, offering them a way to navigate difficult financial situations and move towards a more stable future.
A short sale can be a smart way to mitigate foreclosure (learn more about foreclosure here) on a mortgage, although they can be difficult to attain in today’s market, they often prove to be a simpler way to resolve any debt left over from a loan. A short sale may offer you with the opportunity to sell your home for less than what your owe on your mortgage.
A short sale may be your real estate solution in Kansas City if you owe more on your home than it is worth, your are facing long term hardship, or you are not eligible to refinance or modify your mortgage.
Why a short sale may be your real estate solution in Kansas City
You Avoid Foreclosure And The Harmful Effects Of It
Executing a short sale will ensure you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, so you can pay off the property leaving you without the debt that you cannot afford.
Foreclosure can create financial issues for your future. A foreclosure on your credit record could remain for up to 7 years, and that means you won’t be able to acquire a new home loan.
Renting may also become more difficult, as most housing providers ask for credit score as part of their screening process. Rental applications, in an effort to evaluate your commitment to paying for your housing, may ask for evictions and foreclosures. A short sale relieves the debt that is left over from what is owed on the mortgage, letting both the bank and the seller move on.
Credit Worries
A short sale is easier on your credit score, which can allow a homeowner the ability to recover in the long run. With a foreclosure on your record, you may have trouble with getting other types of loans or even opening a checking account. Since a short sale pays off the mortgage that you have on the property, you avoid having the notation of a foreclosure on your credit report for up to 7 years. Your credit report will only show a pre-foreclosure status, which reduces your credit rating minimally compared to a foreclosure.However, you may see a note on your credit report that states you paid off the mortgage for less than was owed.
Buying a New House
A short sale may be your real estate solution in Kansas City , because a foreclosure can last for a long time, making it impossible to purchase a mortgage again for up to 7 years.
Short sales offer a little more flexibility for the seller, allowing new home applications only 2 years after the filing depending on the bank. It also makes a mortgage lender more likely to approve your loan than if you had a full foreclosure, getting you back into a home faster.
Again, this all depends on the actual bank / lender you’re working with… so if they’re giving you a hard time a year or two after a short sale… shop around and find another bank to work with.
Usually No Fees Involved
Typically the bank will benefit from getting most of the note paid off, so if you can effectively prove that you owe more than the house is worth, they may be willing to discuss with you. This process is usually completed without any additional fees charged to you.
With a foreclosure, your mortgage lender may tack on extra fees that only make the damage worse.
Some real estate consultants may charge a fee for helping facilitate the foreclosure with your bank… so check with them before you enlist a real estate agent or firm in helping you with this.
Our company, Mastiff Home Buyers may be able to guide you in the right direction on how to give yourself the best shot at a bank approving a short sale with your Kansas City area house… so connect with us by calling (816) 535-0076 or shoot an email to us through our contact page here.
Why work with Mastiff Home Buyers
You will have to provide the bank with proof of being unable to pay your mortgage payments. This can be difficult and may only be resolved by finding a good real estate attorney in your area that has experience dealing in this type of law. Hiring an attorney may seem impossible if you are already struggling financially.
If you find yourself unsure about whom to contact or where to seek advice regarding a potential short sale, look no further. We are here to assist you every step of the way. Our dedicated team is ready to provide a listening ear, discuss your unique situation, and offer guidance on whether a short sale may be a suitable option for you. The best part? Our consultation comes at no cost to you. We genuinely care about your well-being and want to ensure you make informed decisions. In some cases, we may even be able to handle the entire process on your behalf, relieving you from the burden of managing the intricate details. So, if you’re feeling overwhelmed and uncertain, reach out to us today. We are committed to helping you explore the possibilities and find the best path to alleviate the pressures of your mortgage, allowing you to regain control of your financial future.
We buy houses in Kansas City and we work with home sellers like yourself who are have unique circumstances that makes it more difficult to sell their house in the traditional ways or those who can’t or do not want to list with a real estate agent.
Get a hold of us anytime to discuss your situation. We’re here for you!
Click the link below and fill out the form on the next page. We’ll make a no-obligation cash offer to you within 24 hours. At least that way you know whether that is an option for you or not.