One of the hardest things that you might experience is losing your home that you have worked so hard for. This is actually a problem that many property owners are experiencing nowadays, what with all the financial problems plaguing the country. The possibility of facing foreclosure or even bankruptcy does not only strip you off your ownership of your home; this also damages your credit score and subjects you to embarrassing situations.
While you might think that foreclosure or bankruptcy is the only way out of the financial pinch that you are in, you actually have better alternatives. The most commonly preferred options by most home owners facing foreclosure on their properties are the short sale process and loan modification. These two alternatives have helped a lot of property owners walk away from their financial hardships with their dignities intact.
If you are facing foreclosure on your home, you might be asking yourself whether to go with a short sale or to choose loan modification. While loan modification may be a viable option, a short sale has several benefits and advantages over the former. If you are still undecided on which alternative to choose, here are some of the differences, the benefits, and the advantages of a short sale VS loan modification.
What a Short Sale is all about
With a short sale, the lender accepts a cash payment on your property that is less than the amount of the remaining balance on your mortgage. For instance, if your mortgage balance is $250,000, the lender may accept a discounted payment of $200,000 from a buyer. If you no longer have the ability to keep making payments on your mortgage and if you do not have the desire to keep living in your current home, a short sale is the better option for you.
The process of short sales usually requires the assistance of a Realtor to help you sell your property. Your Realtor will help you find a buyer and negotiate the transaction with your lender. The lender will then approve and accept the offer made by a potential buyer once you and your short sale agent have reached an agreement. This is why it is very important that you look for a reliable, professional, and experienced Realtor that will assist you throughout the short sale process. Make sure that the short sale Realtor you are going to be in a business deal with is experienced in handling short sales.
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