What is a short sale and how does it benefit you here in Macon?
If you’re thinking that question about yourself… great question!
In this article, we’ll explore this topic to help you, as a homeowner in Macon, Georgia, understand your options if you’re facing foreclosure or if your mortgage is underwater.
What is a Short Sale and How Can 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 once common in the real estate market, especially during a period when a surge in foreclosures significantly affected the Macon market. However, with fewer foreclosures and rising home values, lenders are now somewhat less likely to offer short sales as frequently as they did before—though they still happen regularly.
Here are a few reasons you may want to consider short sale on your Macon home
You Avoid Foreclosure And Its Negative Consequences
The best benefit of short sale is that you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt that you cannot afford.
Foreclosure can create a range of financial challenges, beginning with the difficulty of securing a new home loan, as a foreclosure typically remains on your credit report for up to seven years.
Facing foreclosure in Macon can make renting more challenging. Your credit score may take a hit, and you might be required to disclose the foreclosure on rental applications. Additionally, the effects of foreclosure can linger, potentially impacting your ability to qualify for a new mortgage for up to seven years.
Credit Worries
Foreclosure can significantly impact your credit, making it challenging to obtain a car loan or rent a home through conventional financing options.
If your job involves handling money, you could even risk termination if your employer places significant importance on your credit situation (although most employers don’t, it has happened in some cases).
Choosing a short sale can help eliminate the remaining mortgage debt, providing a fresh start for both the lender and the seller. This option is gentler on your credit score, offering homeowners the opportunity to bounce back over time. With a short sale, your credit report typically reflects a pre-foreclosure status, resulting in a lesser impact on your credit score compared to a foreclosure.
Buying a New House
A foreclosure can have long-lasting effects, potentially preventing you from qualifying for a new mortgage for up to seven years.
Short sales offer a little more flexibility for the seller, allowing new home applications only 2 years after the filing depending on the bank. It also makes a mortgage lender more likely to approve your loan than if you had a full foreclosure, getting you back into a home faster.
Ultimately, this depends on the specific bank or lender you’re dealing with. If they’re giving you trouble a year or two after a short sale, consider exploring other banks or lenders for better options.
Usually No Fees Involved
One potential advantage of a short sale is that banks typically don’t charge fees for the process. Their primary goal is to remove the loan from their books. If it can be demonstrated that your home is “underwater” (meaning you owe more than its market value) and you’re at risk of abandoning the property, the bank might prefer arranging a short sale to avoid the expense and complexity of foreclosure.
In the case of a foreclosure, your mortgage lender might impose additional fees, such as late payment penalties, legal costs, and administrative charges. These extra expenses can significantly increase your overall debt, worsening your financial situation and making it even harder to recover. These added costs, combined with the negative impact on your credit, highlight the importance of exploring alternatives to foreclosure whenever possible.
Certain real estate consultants may charge a fee for guiding you through the foreclosure process with your bank. These fees can vary widely depending on the services offered, such as negotiating with the lender, preparing necessary documentation, or providing expert advice on your options. Before hiring a real estate agent or firm, it’s crucial to ask for a clear explanation of their fees, including any upfront or hidden costs, to ensure you understand what you’ll be paying for. Taking this step helps you make an informed decision and avoid unexpected financial surprises during an already challenging time.
Our company, Georgia House Buyers LLC 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 Macon area house… so connect with us by calling (478) 739-3968 or shoot an email to us through our contact page here.
Getting a Short Sale – What You May Need To Provide
You will need to provide the bank with evidence that you are unable to make your mortgage payments. This can be a challenging process, so it’s advisable to consult a skilled real estate attorney in your area who has experience handling these types of cases.
If you don’t know who to contact or where to turn to see if a short sale may be a good option for you… get a hold of us.
We won’t charge a thing to discuss your situation with you and let you know your options.
And we can even give you guidance and pointers at absolutely no cost or obligation.
Sometimes we’re actually able to do the work for you or even buy the house from you to get you out from under that mortgage… so that may be a viable option for you.
Are you looking to sell your house in Macon? We specialize in helping homeowners navigate challenges with the traditional selling process. Whether you’re unable to list with an agent or prefer an alternative approach, we’re here to assist you.
Get a hold of us anytime to discuss your situation. We’re here for you!
If you’d like to see what we can offer for your house, click the link below and complete the form on the next page. We’ll provide you with a no-obligation cash offer within 24 hours, giving you a clear idea of whether this option works for you.
Get A Cash Offer On Your Macon Area House Here >>
Looking to sell your house in Macon? Look no further! We are your go-to real estate experts in Macon, Lizella, Warner Robins, Bonaire, Jeffersonville, Kathleen, Centerville, Byron, Fort Valley, Gray, Milledgeville, Forsyth, Juliette, Bolingbroke, Roberta, and Dry Branch. Contact Georgia House Buyers LLC today at (478) 739-3968 for a quick and hassle-free sale!
