In California why is a short sale a good option for you?
If you’re thinking that question about yourself… great question!
As a Northern California and surrounding areas such as Sacramento, Turlock, Modesto, and others, we’ll explore that question in this article. Homeowners in California can find out what options they have during foreclosure or just if their mortgage is underwater.
What is a Short Sale and How Does it Benefit You?
Although short sales can be cumbersome in today’s market, they can often prove to be the easiest way to resolve any debt left over after a mortgage. (Here’s a good definition of what a foreclosure is, just in case you need one.)
In the market a couple of years back, when California was hit by a flood of foreclosures, short sales were very common… With the slowdown in foreclosure activity and an increase in home values, that trend has slowed down. Short sales are less common as they used to be (but they still happen a lot).
Here are a few reasons you may want to consider short sale on your home
You Avoid Foreclosure And The Harmful Effects Of It
You avoid a foreclosure on your house with a short sale. Your mortgage lender accepts less than what you owe on your mortgage, leaving you with no debt you cannot afford.
There are many problems associated with foreclosure, starting with the inability to obtain a new mortgage because a foreclosure stays on your credit record for up to seven years.
In addition to having a hurt credit score, the process of applying for a rental will become more difficult if your credit score is affected. Additionally, foreclosures can last a long time (up to 7 years as mentioned above), making it difficult for you to even qualify for a new mortgage.
If you undergo a foreclosure, your credit will be affected in many ways. You may not be able to obtain a bank loan to buy a car or rent a house.
Your job could even lead to termination if your employer places a lot of stock in that kind of thing (most employers won’t, but it has happened before).
In a short sale, the leftover debt owed on the mortgage is relieved, allowing both the bank and the seller to move on with their lives. Additionally, a short sale is easier on your credit score, which may allow you to recover in the long run. Pre-foreclosure status on your credit report will only affect your credit rating minimally compared to a foreclosure.
Buying a New House
When a foreclosed property remains unpaid for quite some time, it is generally impossible to obtain a mortgage again for as long as seven years.
Depending on the bank, short sales enable the seller to apply for a new home only 2 years after the filing. Having a short sale makes mortgage lenders more likely to approve your loan than if you had a full foreclosure, getting you back into a home faster.
Depending on the bank or lender you are working with, this may vary… So if you’re having trouble a year or two after a short sale… Find another bank to work with by shopping around.
Usually, No Fees Involved
In most cases, the bank does not charge a fee for the short sale process. All the banks want is to get rid of the note… In the event your house is “underwater” (you owe more than it is worth)… You’re at risk of walking away from the house… As opposed to a costly foreclosure, the bank may prefer to work out a short sale.
Foreclosures can result in added fees that only complicate matters.
You may have to pay a fee to a real estate consultant to facilitate the foreclosure with your bank… Check with them first before hiring a real estate agent or firm to assist you.
Our company, MCB Homes Inc. 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 California area house… so connect with us by calling (209) 743-0602 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.
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.
We won’t charge a thing to discuss your situation with you and let you know your options.
And we can even give you guidance and pointers at absolutely no cost or obligation.
Sometimes we’re 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 houses 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.
This short article on short sales and the benefits applies to all cities in California State including Modesto, Lodi, Sacramento, Turlock, Valley Springs, Salida, and Oakdale.
Get hold of us anytime to discuss your situation. 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’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.