Seller’s Short Sale Top 4 Questions

There are thousands of homeowners who are having financial problems especially with their mortgage payments. However, some of them might have survived the hardship because their mortgage lenders were willing to work out their mortgage difficulty by accepting short sale. So before accepting or choosing short sale, there are a number of questions that can help every confused borrower whether or not a short sale is really for them.

1. What is Short Sale??

A short sale is a sale of Homes for Sale in Suffolk Virginia, for example, in which the sale proceeds fall short of the balance owed on the property’s loan. When foreclosure is close at hand, it becomes a very useful tool for lenders and homeowners. One good reason why borrowers opt for short sale rather than proceed with the foreclosure process is because the existing lender pays virtually all sales costs, commissions, escrow, title fees and repair costs. Because the loan has been paid and foreclosure has been avoided, the homeowner will have no problem to get their home sold.

2. Will the lender accept short selling the property?

It depends on the extent of hardship a borrower is experiencing. In order for the short sale request to be processed by the Loss Mitigation Department, the hardship has to be real so that the company will consider the loan as delinquent. The borrower must submit a strong hardship letter that states the reason of the missed payments in order for a short sale request to be processed. Reasons or ‘hardships’ that are commonly accepted by mortgage are – job loss or significant income loss, family illness or injury, illness or injury in the extended family – particularly if it forces relocation, job relocation when the property is equity deficient, divorce or split of domestic partners, and adjustment in mortgage payment or unforeseen increase in living expenses

3. What is the cost of short of short selling a property?

In most cases, you have to literally pay NO sales cost if your lender agrees with the Short Sale. As part of the short sale agreement, the lender should pay for everything which includes all commissions, title and escrow fees, and even most repair expenses. You might be surprise if a lender agrees with a short sale. The reason behind why they approve a short sale and accept to pay everything for your Woodbridge Virginia Homes property to avoid the biggest loss called foreclosure.

4. How can a Short Sale have an effect on one’s credit rating?

Foreclosure is the most damaging event in your credit status and is considered worst than bankruptcy. A short sale can still affect your credit and this will show on your credit, but you will likely to be able to resume borrowing relatively quickly than that of a foreclosure.

These are more questions that need to be answered when it comes to short selling your home, but these four are the most frequently asked questions that needs clarification before a borrower can consider a short sale over a foreclosure.

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