What is the Best Way to Avoid a Short Sale?
For many homeowners, a short sale is a way to avoid foreclosure or bankruptcy. As such, a short sale is often viewed as a relief to what could be a financial disaster. However, what you may not know is that a short sale can also hurt your credit score. Plus, the bank may still come after you for the remainder of the balance after selling the home.
From the lender’s viewpoint, a short sale helps them recoup as much debt as possible. Therefore, they are not doing you a favor by agreeing to a short sale. For this reason, a short sale can backfire on you in several ways. Instead of choosing a short sale, you may want to consider trying to sell your house as-is for cash directly to a buyer. Below, we look at the best way to avoid a short sale.
What is a Short Sale?
During a short sale, you sell your house for less than what you owe on the mortgage. All of the proceeds of the sale go to the lender. If there is a balance left over, the lender either forgives the debt or submits a deficiency judgment, which requires you to pay the remainder of the mortgage.
Although this seems like a less-than-ideal arrangement, a short sale is preferable to foreclosure. A short sale is a way for you and the lender to get out of a difficult financial situation by taking a loss.
Why a Short Sale Seems Like a Good Option
You may choose a short sale if you can no longer afford to keep up with the mortgage payments. Instead of waiting for the bank to foreclose on the home, you may initiate the short sale process by applying to the lender.
There are two factors that the lender considers when deciding whether to approve a short sale:
- The house must be worth less than what you owe on it. The lender reviews recent sales of comparable properties to make sure this is the case.
- You must prove financial hardship. You have to show that you do not generate the income or assets necessary to pay back the rest of the mortgage.
Request Your Fair Cash Offer:
Is There a Better Option Than a Short Sale?
If you are several months behind on your mortgage payments, your financial situation does not look to improve, and you no longer want the house, a short sale may seem like your best option. However, there is a way to get out of your mortgage without killing your credit or listing your house on the market.
You can sell your house fast in Cincinnati, Ohio, directly to a buyer. This type of transaction is known as a cash sale. In a cash sale, the buyer looks at your property and makes a fast cash offer. You agree to the offer and close the deal quickly. In most cases, you can close the sale in seven to 21 days. This option gives you plenty of time to unload the property and get out of the mortgage.
Will I Make a Profit in a Cash Sale?
You could try to sell your house on the market and make a profit or enough to pay back the loan balance. However, one of the reasons why you are considering a short sale in the first place is because the current value of your house is less than what you still owe on the loan. So, the chances of you making any kind of profit on the sale are very slim.
So, why choose a cash sale directly to a buyer? There are several reasons:
- You do not have to hire a realtor and pay realtor commissions.
- You sell the house as-is – no repairs, no home improvements.
- The sale is quick, which allows you to avoid foreclosure or bankruptcy.
- Banks are happy to work with professional, qualified buyers.
- You can sell your house for cash regardless of your situation.
If you’re in a race against time and trying to keep your house from going to foreclosure, you won’t have time for a traditional sale. A cash sale can get you out of your situation quickly in as few steps as possible.
How Does a Cash Sale Work?
At Neighborhood Enrichment, we can buy your house as-is in three easy steps.
Step 1: Contact Us
Call us today and tell us about your property. We’ll schedule a quick walkthrough of your house. No need to renovate or prepare your home. We buy houses as-is.
Step 2: Get A Cash Offer
If we are interested in buying your property, we’ll make a fair, no-obligation cash offer. We make most offers within 24 to 48 hours. Our offers come in at just under the current value of your house.
Step 3: We Pay Cash For Your House
If you accept our offer, then schedule a closing date that is convenient for you. We pay all closing costs and put cash in your hands in as little as seven days after closing. Selling your house is easy!
Contact Us to Sell Your House Today!
If you are ready to sell your house fast, then now is the time. Neighborhood Enrichment can make an offer and put cash in your hands in as little as seven days. Call 513-586-4237 to get a fast cash offer today.