What is a short sale and how does it benefit you here in Philadelphia?
If you’re thinking that question about yourself… great question!
In this article we will dive into that question so you as a Philadelphia, Pa or surrounding area home owner can tell what your options are during foreclosure or just if your home mortgage is underwater. This information should give you some different options to think about so you can make an informed decision for yourself or you and your family based on your unique situation.
What is a Short Sale and How Does it Benefit You?
A short sale can be a smart way to mitigate foreclosure (here’s a great definition of what a foreclosure is in case you’re not sure) 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. It will allow you to get out of the situation so to speak.
Short sales were really common in the market a couple years back when the flood of foreclosures hit the markets in Philadelphia and the suburbs surrounding it… but as foreclosures have slowed down and home values have climbed back up a bit… lenders are a little less likely to offer a short sale as an option as they used to be (but they are still doing a lot of them!). This is a good thing that they are still doing them because it helps a lot of homeowners in Bad situations, who otherwise would not have any options.
Here are a few reasons you may want to consider a short sale on your Philadlephia home
You Avoid Foreclosure And The Harmful Effects Of It
The best benefit of short sale is that you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt that you cannot afford. You escape the situation and your debt is paid off in full.
Foreclosure can lead to all kinds of financial problems, starting with the inability to obtain a new loan for a home because a foreclosure stays on your credit record usually for up to 7 years. Also they dent in your Credit is very significant and you won’t qualify for anything.
Even renting will become more difficult as your credit score would be affected in a very negative way, and you often have to disclose a foreclosure on a rental application. Foreclosures can also last a long time (up to 7 years as mentioned above), making you wait years to even qualify for a new mortgage. Which is a very long time.
With a foreclosure, you face all kinds of ramifications with your credit. Buying a car and renting a house may be impossible through the normal bank loan routes.
If you work with money at your job you could even face termination if your employer puts a lot of stock in that kind of thing (most employers won’t but it has been done before).
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. It is basically a way to call it even for both parites in a sense. A short sale is also easier on your credit score, which can allow a homeowner the ability to recover in the long run. Your credit report will only show a pre-foreclosure status, which reduces your credit rating minimally compared to a foreclosure.
Buying a New House
A foreclosure can last for a long time, making it impossible to purchase a mortgage again for up to 7 years. Throughout those 7 years you will have a rough time qualifying for any type of loan in general.
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. Many Banks and lending institutions have different criteria so it’s best to shop around to see what institution is a better fit for you. Different Banks and lending institutions look at things in different ways. Every person has a unique situation as well.
Usually No Fees Involved
One potential benefit of the short sale is there are usually no fees associated with the process from the bank. The banks just want to get the note off of their books… and if it can be proven that your house is “underwater” (you owe more than your house is worth)… and you’re at the risk of walking away from the house… the bank may rather work out a short sale instead of going through a costly foreclosure. They have to spend time and money on top of you being behind of payments.
With a foreclosure, your mortgage lender may tack on extra fees that only make the damage worse. Those fees add up in a great way.
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. You want to be informed about the entire process and not pay a bunch of hidden fees when your already in foreclosure because things are tight financially.
Our company, TriState Properties 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 Philadelphia area house… so connect with us by calling us immediately at 267-703-9956 or shoot an email to us through our contact page here.
Getting a Short Sale – What You May Need To Provide
You will have to provide the bank with proof of being unable to pay your mortgage payments. This can be difficult and is best resolved by finding a good real estate attorney in your area that has experience dealing in this type of law. This may be costly dealing with an attorney but may be your best option at the point, if it is affordable to you.
If you don’t know who to contact or where to turn to see if a short sale may be a good option for you… get a hold of us. Us at TriState Properties, We are here to help in every situation, we are a proven Cash Homebuyer who are experts in every difficult situation. TriState Properties helps homeowners just like yourself sell your home fast for Cash in Philadlephia and every surrounding county. We are experts in difficult situations and have been dealing with the most stressful issues homeowners can run into for over a Decade.
We won’t charge a thing to discuss your situation with you and let you know your options. We will answer all your questions and concerns.
And we can even give you guidance and pointers at absolutely no cost or obligation. We don’t charge any fees of any sort. Some or most companies do. Don’t ever be afraid to ask for help, especially in difficult times that are overwhelming and stressful.
Sometimes we are actually able to do the work for you or even buy the house from you to get you out from under that mortgage… so that may be a viable option for you.
We buy Philadelphia and surrounding area houses for Cash and we work with home sellers like yourself who are having troubles getting out of your house the traditional way… or who can’t (or don’t want to) go the usual route of listing with an agent. We are experienced experts in this area and have been doing business for over a decade in this industry.
Get a hold of us anytime to discuss your situation. We are empathetic to all situations and would love to speak with you about your issue. Everything we discuss with our sellers is strictly confidential and will not be shared with anyone. We pride our business in honesty, trust, integrity and creating Win-Win situations for all parties in any transaction. We’re here for you!
Or, if you want to see what we can offer on your house… click the link below and fill out the form on the next page. We will 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. Also you will know if our offer covers the mortgage, if you can walk away with money after the mortgage is paid, what your time frame for leaving the home will be, etc…We are fair in all of our Cash offers and would love to let you know what we can do for you. Don’t hesitate to reach out and allow us to help you in a difficult time. Give us a call or Fill out a Form on our Website now. We look forward to hearing form you today!