The Alternative to Foreclosure – Short Sale
If you feel trapped because you purchased a home in Albuquerque shortly before the housing bubble burst, you may wonder how to short sale your home. While it is not a pleasant transaction, a short sale can help you protect your credit rating even though you fell behind on payments.
What do you get by going through a short sale instead of just walking away? First, it may help you avoid bankruptcy. A short sale is considerably less damaging to your credit rating than bankruptcy. Next, you can spare your family the embarrassment of being turned out of your home.
A short sale may help you maintain your reputation within your community. Anyone can be caught by a plummeting real estate market, but letting a house go into foreclosure is seldom the best way out.
What is a short sale? Simply put, it is when a bank or lender accepts less for a property than the total amount due. Often, the lender loses less money by negotiating a short sale than by incurring the costs of foreclosure and eviction proceedings against the buyer. While it is not ideal, in the end, both the lender and the borrower can come away with less damage.
Not all banks and lenders will accept the idea of a short sale, but it is well worth your time and effort to research the option and make a proposal to the bank. In some markets, short sales now represent about half of the homes on the real estate market. The percentage is lower in Albuquerque, but it is certainly a more common reality today than in years past.
Nothing can take the sting away from owing more on a home than it is worth, but putting your home on the market for a short sale can help you to salvage as much as you possibly can from the sale of your home.
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