What is a short sale and how does it benefit you here in DFW?
If you’re pondering that question about your situation, it’s an excellent inquiry!
Within this article, we’ll delve into that question, equipping you, a homeowner in DFW, TX, with insights into your available choices when facing foreclosure or when dealing with an underwater home mortgage.
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 a prevalent occurrence in the market a few years ago when a wave of foreclosures impacted the DFW real estate landscape. However, with the decline in foreclosures and the subsequent rebound in home values, lenders have become slightly less inclined to readily provide short sales as an alternative, compared to their previous frequency. Nevertheless, it’s worth noting that short sales are still actively pursued by many lenders.
Here are a few reasons you may want to consider short sale on your DFW home
You Avoid Foreclosure And The Harmful Effects Of It
The primary advantage of a short sale is the avoidance of a foreclosure on your property. By accepting an amount less than the outstanding mortgage, your lender helps you eliminate the unmanageable debt burden.
Foreclosure can trigger a range of financial hardships, commencing with the hindrance in securing a new home loan due to the enduring presence of a foreclosure mark on your credit history, typically spanning up to 7 years.
Furthermore, even the act of renting can become more challenging, given the impact on your credit score, coupled with the requirement to disclose a foreclosure on rental applications. The prolonged duration of a foreclosure (up to 7 years, as previously mentioned) further means waiting several years before becoming eligible for a new mortgage.
Credit Worries
Undergoing a foreclosure exposes you to a spectrum of consequences affecting your credit. Traditional bank loan avenues for purchasing a vehicle or renting a residence might become unattainable.
In instances where your job involves financial responsibilities, the possibility of termination due to the significance placed on credit matters by your employer could emerge (although this is relatively rare).
In contrast, a short sale offers relief from the residual debt stemming from the outstanding mortgage, facilitating a fresh start for both the bank and the seller. A short sale’s impact on your credit score is comparatively milder, allowing homeowners the prospect of eventual recovery. Your credit report will merely indicate a pre-foreclosure status, which has a lesser impact on your credit rating in comparison to a full foreclosure.
Buying a New House
The duration of a foreclosure can extend significantly, rendering the possibility of securing a mortgage again for a period of up to 7 years virtually unattainable.
Opting for a short sale provides a bit more flexibility for the seller, permitting new home loan applications as soon as 2 years following the filing, contingent on the specific bank’s policies. Additionally, opting for a short sale enhances the likelihood of your mortgage application gaining approval compared to a full foreclosure, expediting your return to homeownership.
However, it’s crucial to note that these outcomes are contingent upon the specific bank or lender you are engaging with. If you encounter challenges a year or two after a short sale, it’s advisable to explore other banking options to potentially find a more accommodating lender.
Usually No Fees Involved
An advantageous aspect of a short sale is that it typically involves minimal fees imposed by the bank. The primary objective for banks is to remove the outstanding loan from their records. If it can be substantiated that your property is “underwater” (meaning the debt surpasses the property’s value) and you are at risk of abandoning the property, the bank might prefer pursuing a short sale to sidestep the costlier foreclosure procedure.
In contrast, a foreclosure could lead your mortgage lender to levy additional charges, exacerbating the financial repercussions.
It’s worth noting that certain real estate advisors might charge a fee for their assistance in coordinating the process with your bank. Prior to enlisting the services of a real estate agent or firm, it’s advisable to clarify their fee structure.
Our company, Relief Home Solutions 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 DFW area house… so connect with us by calling (214) 983-1833 or shoot an email to us through our contact page here.
Getting a Short Sale – What You May Need To Provide
Presenting the bank with evidence of your inability to meet mortgage payments is a requisite step. However, addressing this challenge is ideally managed by engaging a proficient real estate attorney who specializes in this specific legal area.
If you’re uncertain about whom to contact or where to turn to explore the viability of a short sale, do not hesitate to reach out to us.
We extend a commitment to engage in conversations with you without any associated charges, offering insights into your situation and presenting the range of options available to you.
Furthermore, we’re prepared to provide guidance and pointers at absolutely no cost or obligation to you.
In certain instances, we are even positioned to undertake the necessary steps on your behalf or potentially purchase your property, offering a solution to alleviate your mortgage burden.
As purchasers of houses in DFW, we collaborate with homeowners facing challenges in the traditional selling process or those who prefer not to take the conventional route of listing with an agent.
Feel free to reach out to us anytime to discuss your circumstances. We are here to assist you.
Alternatively, if you wish to explore what we can propose for your property, click the link below and complete the form on the ensuing page. Within 24 hours, we will furnish you with a no-obligation cash offer. This approach empowers you with clarity on whether this option aligns with your needs.