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What is a Short Sale and Why Do I Want One?

So what the heck is a short sale anyway?

A short sale occurs when a lender allows the homeowner to sell their home for less than the amount owed on it. For example: A homeowner owes $500,000 on a home with a market value of $350,000.

Long story short, the lender accepts the offer for $350,000 and the home is sold.

That's a short sale.

So why on earth would I want one?

One of the most important reasons that you should sell before your house is foreclosed is to protect your credit. As you can imagine, a foreclosure on your credit report is difficult to overcome. Those with a foreclosure on their credit report often have a difficult time renting an apartment or house. They also face difficulty getting a credit card, car loan, or a new home loan. A foreclosure must be disclosed on every rental and credit application.

Another great reason to sell before a foreclosure is that you won't have to leave immediately. When a house is foreclosed, you get a knock on the door advising you that the bank now owns your home, and you need to get out. With a short sale, you have some control over the length of the escrow time, you know when the sale will happen, and you know when the new owners will expect to move in. This will give you some time to get packed up, pool your resources, and get the kids ready to move.

The best reason of all is that a short sale will allow you to walk away with your head held high. There will not be foreclosure notices posted on the door of your house and in the newspaper for your friends, neighbors, and coworkers to see. You can just explain that it is time to sell your house, and no one has to know what your financial situation is.

So what do I do now?

Time is not on your side when you are considering a short sale. You must act quickly and work only with a real estate expert who has the necessary skills to help you negotiate with your lender. You should interview 3 successful REALTORS(R) and they should be able to provide you with proof of their success helping other families with short sales.

If you want to know if a short sale is right for you, please call or email. We offer a free, no obligation consultation.

There may be tax or legal consequences to the sale of a home, including short sales. Please ask your tax professional how a sale may affect your tax liability.

Thanks!

Liane Thomas
Thomas Realty Group
Serving Corona, Riverside, and the surrounding areas.
951 454-3805
Liane@LianeThomas.com
www.AllCoronaHomes.com
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Posted Monday May 25