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What is a short sale and how does it benefit you in Fort Myers Florida?

What is a short sale and how does it benefit you here in Fort Myers?

If you’re thinking that question about yourself… great question!

In this article we’ll dive into that question so you as a Fort Myers Florida home owner can tell what your options are during foreclosure or just if your home mortgage is underwater.

What is a Short Sale and How Does it Benefit You?

A short sale can be a smart way to mitigate foreclosure (here’s a great definition of what a foreclosure is in case you’re not sure) on a mortgage, although they can be difficult to attain in today’s market, they often prove to be a simpler way to resolve any debt left over from a loan.

Short sales were really common in the market a couple years back when the flood of foreclosures hit the Fort Myers market… but as foreclosures have slowed down and home values have climbed back up a bit… lenders are a little less likely to offer a short sale as an option as they used to be (but they are still doing a lot of them!).

Here are a few reasons you may want to consider short sale on your Fort Myers home

You Avoid Foreclosure And The Harmful Effects Of It

The best benefit of short sale is that you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt that you cannot afford.

Foreclosure can lead to all kinds of financial problems, starting with the inability to obtain a new loan for a home because a foreclosure stays on your credit record usually for up to 7 years.

Even renting will become more difficult as your credit score would be affected, and you often have to disclose a foreclosure on a rental application. Foreclosures can also last a long time (up to 7 years as mentioned above), making you wait years to even qualify for a new mortgage.

Credit Worries

With a foreclosure, you face all kinds of ramifications with your credit. Buying a car and renting a house may be impossible through the normal bank loan routes.

If you work with money at your job you could even face termination if your employer puts a lot of stock in that kind of thing (most employers won’t but it has been done before).

A short sale is a strategic financial maneuver that offers a mutually beneficial solution for both the homeowner and the lending institution. By selling the property for less than the outstanding mortgage balance, the seller can absolve themselves of the remaining debt, providing a crucial lifeline for those struggling to meet their financial obligations. Simultaneously, the bank can recover a portion of the loan amount without resorting to the costly and time-consuming foreclosure process. This collaborative approach not only allows for a more dignified exit for the homeowner but also enables the lender to mitigate potential losses and streamline their asset management processes.

From a credit perspective, opting for a short sale can be a more favorable alternative compared to foreclosure. While both situations signal financial distress to creditors, the impact on the individual’s credit score varies significantly. With a short sale, the homeowner’s credit report typically reflects a status of “pre-foreclosure,” which, although not entirely positive, carries less severe consequences than a foreclosure. This nuanced difference can offer a silver lining for individuals looking to rebuild their financial standing in the aftermath of a distressed property sale, providing them with a pathway towards eventual recovery and stability.

Buying a New House

A foreclosure can last for a long time, making it impossible to purchase a mortgage again for up to 7 years.

Short sales offer a little more flexibility for the seller, allowing new home applications only 2 years after the filing depending on the bank. It also makes a mortgage lender more likely to approve your loan than if you had a full foreclosure, getting you back into a home faster.

Again, this all depends on the actual bank / lender you’re working with… so if they’re giving you a hard time a year or two after a short sale… shop around and find another bank to work with.

Usually No Fees Involved

Short sales can offer a silver lining for homeowners facing the grim reality of being underwater on their mortgage. Unlike foreclosures, which can be financially burdensome for both the homeowner and the bank, short sales often come with minimal fees from the bank’s end. In this scenario, the bank’s primary objective is to eliminate the delinquent loan from its books, and if a property is deemed underwater, meaning the mortgage balance exceeds the property’s current market value, opting for a short sale can be a more attractive solution. By engaging in a short sale, the bank can mitigate potential losses and avoid the protracted legal proceedings and costs associated with foreclosures.

For homeowners teetering on the edge of financial distress, the prospect of a short sale can provide a lifeline. Rather than enduring the ordeal of foreclosure and its lasting repercussions on creditworthiness and financial stability, negotiating a short sale presents a more amicable exit strategy. It allows homeowners to offload the property without facing the stigma and financial fallout of foreclosure. Additionally, short sales can pave the way for a smoother transition, sparing homeowners the emotional toll of eviction proceedings and offering a chance to regain control over their financial future.

With a foreclosure, your mortgage lender may tack on extra fees that only make the damage worse.

Some real estate consultants may charge a fee for helping facilitate the foreclosure with your bank… so check with them before you enlist a real estate agent or firm in helping you with this.

Our company, Sell My House Now USA may be able to guide you in the right direction on how to give yourself the best shot at a bank approving a short sale with your Fort Myers area house… so connect with us by calling (239) 360-3176 or shoot an email to us through our contact page here.

Getting a Short Sale – What You May Need To Provide

You will have to provide the bank with proof of being unable to pay your mortgage payments. This can be difficult and is best resolved by finding a good real estate attorney in your area that has experience dealing in this type of law.

If you don’t know who to contact or where to turn to see if a short sale may be a good option for you… get a hold of us.

We won’t charge a thing to discuss your situation with you and let you know your options.

And we can even give you guidance and pointers at absolutely no cost or obligation.

Sometimes we’re actually able to do the work for you or even buy the house from you to get you out from under that mortgage… so that may be a viable option for you.

At our company, we specialize in purchasing houses in Fort Myers, offering a tailored solution for homeowners facing various challenges in selling their properties. Whether you’re encountering difficulties with the conventional selling process or prefer to avoid listing through a real estate agent, we’re here to assist you. Our goal is to streamline the home-selling experience, providing a hassle-free alternative that meets your specific needs and timeline.

We understand that every homeowner’s situation is unique, which is why we offer personalized solutions to address your concerns effectively. By choosing to work with us, you can bypass the complexities often associated with traditional selling methods, such as staging, open houses, and lengthy negotiations. Whether you’re dealing with financial constraints, property damage, or simply seeking a quick and efficient transaction, we’re committed to facilitating a smooth and stress-free selling process for you.

Get a hold of us anytime to discuss your situation. We’re here for you!

Or, if you want to see what we can offer on your house… click the link below and fill out the form on the next page. We’ll make a no-obligation cash offer to you within 24 hours. At least that way you know whether that is an option for you or not.

Get A Cash Offer On Your Fort Myers Area House Here >>

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