Short sales occur when an individual sells their property for less than their mortgage balance. This may seem counterproductive, but a short sale may be the best option in certain situations. If you have incurred real estate debt, it may be an applicable option.
Short sales commonly take place as a substitution to foreclosure. The extra fees associated with foreclosure are avoided when a short sale is utilized. It can also be a drawn-out process that spans over a long period of time. This allows the debtor and creditor to save money. The unpaid balance on the property is taken as a deficiency by the creditor.
A short sale could provide you with relief from real estate debt. It can also benefit the creditor by bypassing the costs and time associated with foreclosure. The transfer of possession is often times smoother with a short sale.
As the debtor, you may have been searching for a way to leave a binding real estate agreement. You still have options if you cannot afford your payments. If a strategic default is not in your best interest, a short sale may be able to help.
Dodging a foreclosure with a short sale will also have a better benefit for your credit score. In the long run, your credit history will not reflect a foreclosure. Buyers can also experience benefits from a foreclosure. They can attain property at a lower price and avoid any difficulties that can be brought up with a foreclosure.
A short sale may be right for you if you cannot afford your real estate payments. The attorneys at Citizens Law Group can help determine if this is your best option. Our hard-working team will do everything they can to get your financial health back on track. Contact us today to discuss your scenario.