Short Sale As A Solution To Avoid Foreclosure
Today, numerous consumers are facing foreclosure of their primary homes. In many cases, there is no way that they can keep their home. In these cases, it may be best to avoid foreclosure because of what it can do to your credit rating. One way to accomplish this is through a short sale.
A short sale can save you from the consequences of having a foreclosure on your credit report. In this article, the Columbus foreclosure defense attorneys at Kohl & Cook will discuss how short sales work when it comes to avoiding foreclosure.
What is a short sale for real estate?
With a short sale, you make an agreement with the bank beforehand. You offer to sell the home and get the best deal that you can. The bank will accept whatever you can sell the home for as a payment instead of foreclosing on the property. They may choose to do this even when the amount is less than you owe on the mortgage. The bank will accept whatever the house sells for as a complete satisfaction of the mortgage money owed. They will not come after you for any deficiency. The bank will usually agree to a short sale to forgo the cost and effort of foreclosure. The home will need to be saleable for a reasonable amount that is close to what you owe. If the house is in good condition, and you haven’t built up that much equity, a short sale can be an attractive option to both you and the lender.
Benefits of short-selling your home to avoid foreclosure
There are several benefits to short-selling your home to avoid foreclosure. These include:
- Reducing the amount of damage done to your credit – A foreclosure would show up on your credit report as a foreclosure. However, a short sale would show up on your credit report as a paid-off mortgage or as “settled” or “satisfied in full.” While your credit score may be nicked due to missed mortgage payments, it won’t be nearly as bad as having a foreclosure on your record.
- Avoiding having a foreclosure recorded on your credit report – Foreclosures are recorded on your credit report in Public Records. Foreclosures stay on your credit report for 10 years and can be renewed for an additional 10 years at the request of the lender.
- Short sales don’t cost you anything.
- Past-due property taxes would be settled by the lender at the time of the short sale.
Kohl & Cook Law Firm, LLC helps mortgage holders avoid foreclosure in a number of different ways. We can help protect your credit rating and negotiate with the bank on your behalf. A short sale is just one way our attorneys can help you avoid foreclosure and protect your credit score.
Talk to a Columbus Foreclosure Defense Attorney Today
Kohl & Cook Law Firm, LLC represents the interests of mortgage holders in foreclosure defense actions. A short sale is just one way that we can help you avoid foreclosure of your home. Call our office today to schedule an appointment, and we can begin going over your options immediately.
