A short sale can be an attractive option when facing financial hardship if you’re unable to make payments on a mortgage, but there are some important things to consider before making the decision. Here’s what you need to know when going through a short sale in Louisville, KY.
Short Sale Vs. Foreclosure
When going through foreclosure, the lender takes possession of the property and may sell it to recoup its losses. A short sale, on the other hand, is when a lender agrees to accept less than what is owed on a mortgage and allows the borrower to sell the property. This can be beneficial if you’re unable to make payments on the mortgage, as it can prevent foreclosure and help to avoid serious damage to your credit score.
Credit Impact
Although a short sale can help to avoid foreclosure, it’s important to be aware that it still has an impact on your credit score. Your score will take a hit when you go through a short sale, but the effect is usually much less severe than with a foreclosure. Additionally, if you’re able to make all other payments on time and keep your credit utilization low, it should be easier to rebuild your credit score in the years following a short sale.
The Process
Going through a short sale process can be complicated and time-consuming, so it’s important to understand what’s involved before you make the decision. You will need to work with your lender to determine the acceptable amount they are willing to accept on the loan, as well as find a real estate agent who is experienced in short sales.
Once you’ve done this, the process of listing and selling the property can begin. It’s also important to understand that lenders typically require that all proceeds from the sale go towards the loan and any additional costs associated with it.
Alternatives
Discuss the possibility of a revised payment plan or loan modification with your lender before committing to a short sale. If the lender agrees, you may be able to avoid a short sale altogether. Additionally, if you cannot make mortgage payments, you could also consider selling the property and using the proceeds to pay off the loan.
Ultimately, deciding whether or not to go through a short sale is a personal decision. Before making a choice, it’s important to understand the process and potential impacts on your credit score to make an informed decision that’s right for you.
Sell Your House As-Is For Cash
If you are overwhelmed by the prospect of a short sale, we are here to help. At Favor Home Solutions, we make the process of selling your home for cash easy and fast. With us, you don’t have to worry about commissions, closing costs, repairs, staging, or lawyer fees. The best part is that we buy houses as-is to spare you the hassle of making repairs or cleaning.
Let us help you sell my house fast in Louisville, KY. We can provide you with a no-obligation cash offer and close the deal in as little as 10-14 days. Contact us today!
