We often talk to buyers about common questions that come up when purchasing a short sale property; however, sellers of these types of properties often have many questions as well. As the potential seller of a short sale, what can you expect? Here we’ll take a look at some of the most frequently asked questions about short sales from the seller’s perspective.
Should we choose a short sale over a foreclosure?
This is a bit of a tough question. In some cases, it might be easier to let a home go to foreclosure than endure and stress of a short the struggle sale. Whether you should consider foreclosure may depend on the financial and legal consequences of a foreclosure. Before deciding what’s best for you, it’s crucial to get legal and tax advice so you make the most informed decision possible.
How Can a Seller Get Multiple Offers on a Short Sale?
One sure-fired way to get multiple offers is to price your short sale below market value. But beware of pricing your short sale too low because a) the bank is unlikely to take a low bid and b) some buyers might get confused and make lowball offers.
Will a Short Sale Negatively Impact my Credit?
According to FICO, the biggest hit to your credit rating seems to be when there is a deficiency remaining. With a deficiency, the effect on credit for a short sale is almost identical to that of a foreclosure. Without, it’s less. Lenders typically report a short sale on your credit report as “paid in full for less than agreed,” but there are other reporting options.
If you’re a homeowner and you’ve decided a short sale is the right path to take, contact Metrowest. Our experienced professionals specialize in this type of transaction and we’d love to help.