A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
What is a short sale and why should I consider one?
A short sale, sometimes called a pre-foreclosure, is when a homeowner sells the home for less than the total amount of the mortgage, typically because the home has dropped in value. For this type of transaction, we will collect all relevant documentation, obtain approval from your lender and often release you from all debt.
Is a short sale the right option?
If you fall into the above category, which is not uncommon in today’s market, then a short sale is very possibly the right way for you to go. Why would you want to bring money to the closing table if you could short sale. Do remember that the lender needs to approve short sales but it is a better option for them than to have the property go into foreclosure, which may be the only alternative.
What are the benefits of a short sale
There are benefits to you the seller and also the lender for closing on a short sale transaction. As the seller, it will allow you the opportunity to avoid foreclosure and minimize damage to your credit that means you could potentially purchase another property two years later. It also limits the effects a foreclosure could have on current and future employment.
You are eligible to potentially receive “Cash for cooperation” from the lenders! Many of our transactions have resulted in the seller obtaining a cash incentive and/or relocation assistance ranging from $500 to $5000.
If the property is vacant you are still liable for any incidents that may happen. Walking away and pretending the problem will go away could lead to a bigger headache.
Can I do a short sale and owe nothing afterwards?
Colorado is a full deficiency state. What this means is that the lender can pursue the difference between what your home sells for and what you still owe on the loan. Our experts will assist in negotiating a lower payoff so that you have no deficiency or a reduced deficiency.
Why should I work with Metrowest for my short sale?
It seems recently that everyone is claiming to be a short sale expert. However, working a short sale and closing a short sale are very different. Here are Metrowest we have together closed over 200 short sales in the past 12 months. We know how it works, the benefits, the implications and the next step that you need to take to move onwards.
Worst case scenario is the scenario you are in now!
For more information, call our Default Services Hotline, they will be happy discuss and assist you in any default service that is right for you.