When a mortgager agrees to let the homeowner sell a home at a price that is lower than the initial loan amount, a short sale is what occurs. Short sales are an alternative to foreclosures and they give homeowners the chance to evade damage to their credit that often results after a foreclosure. These kinds of sale are not willingly accepted by all financial institutions, but in light of the current combined unemployment and mortgage crises in California, financial institutions are more open to offers concerning California houses than they were in the past. Many government incentives have been recently ratified and the cost effectiveness of short sales when compared to foreclosures has caused banks to become even more open to such offers.
Why Short Sale
A viable substitution to foreclosure presents itself in the form of a short sale when homeowners have difficulty paying their mortgage. Property mortgages that are above what property presently worth, may also be beneficial, so long as homeowners can provide evidence to show that paying their mortgage is a hardship financially and the mortgage is at risk of becoming delinquent.
Take Quick Action
When faced with a foreclosure, it is very likely that you have failed to make a payment on your mortgage or you are under financial pressures. Short sales take a lot of time to complete, so you should take quick action – enough for the property to be sold before the foreclosure date. Acquiring the help of a firm that deal with foreclosures in real estate can make the process swifter but this needs to be done as soon as you are aware of your financial pressures regarding your mortgage.
Finding a Specialist
Transactions for short sale fall in a very specialized area of real estate and for the sale to successfully take place the services of a firm or agent who is skilled with these kinds of transactions are needed. Look up companies which deal with such situations and ask for evidence of their success in the past.
Prepare for Sale
An effort should be made to get the house to look appealing to potential buyers if you really want to find a buyer that is willing to stick around through the long approval procedure. All internal and external aesthetic problems should be taken care of as soon as you have emotionally prepared yourself for selling your home. All the necessary repairs and cleaning should be done. Personal items such as photos should be removed and things such as bookshelves should be emptied. This will allow prospective buyers to picture themselves living in the house.