A Short Sale Might Be Your Best Option

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As dreams of home ownership are taking newer turns, so are our efforts to realize them. It is only natural for anyone to dream of a home of one's own, where one can live with one's loved ones and cherish all the dreams that one had regarding a home, sweet home. And to acquire this, one can actually do anything starting from laboring day in and day out to pay that sky-high mortgage, even compromising on several aspects of daily life. But what happens when you miss one installment? The lender often threatens foreclosure. However, unlike most things, you can decide the fate of your own home. If you're facing a financial hardship that you know will decrease your income and you are you getting behind on your mortgage and you're not sure if you can catch up, a short sale might be your best option.

Why would you do that? Simply put, a short sale means selling your property at a value less than what you owe your bank or the lender, that is, less than the loan balance, which is secured against the property. In a short sale, the lender must approve and accept less than what they are owed as a full payoff (this means they may settle for $200,000, even if you currently owe them $300,000...). Pursuing a short shale can save your credit from the "foreclosure ding", keep you from filing bankruptcy and relieve stress that this financial burden has become.

Why would it interest the lender? A very obvious question arises here as to why your lender would be interested in such a transaction where it is receiving less than what you owe them. The answer to this is simple, indeed. By compromising on a section of its due balance, the lender is basically saving a lot expenses that they would have to spend otherwise in conducting a lot of paper works, by carrying out the legal procedures of foreclosure, refurbishing the property, marketing it, finding the suitable investor and so on and so forth. Just the simple organization and execution of the property foreclosure auction could cost the lender as much as $50,000, which is not a sensible investment.

The question that follows is why any investor would like to buy a short sale property. The answer to this is simple enough - a short sale property usually sells at very down to earth prices, which at times can get as low as 60% of the actual worth of the property. Moreover, with the increasing rate of foreclosure and the subsequent rise of property short sales, the real estate industry is booming all over the United States and is showing much promise to interested US and overseas investors.

We've all had our ups and downs in life and a lot good people can find themselves in very tough spot. We all agree that we're in the middle of a national mortgage crisis and that, in many cases, homeowners who have bought or refinanced in the last few years have been affected by unethical lending practices.

If you want to find out more about the short sale process, I am available and well prepared to assist you in reaching your real estate objectives. If you are ready to move forward, you can reach me at 214-234-6901 or by email at Grant@GrantHowell.com. You may also visit my Web site at ww.BrokerMyHouse.com for additional information on all the real estate services I offer.