When property owners are not able to service their mortgage, lenders are often forced to repossess their property. This often starts with the letter of default. If you have defaulted on your loan and received the letter of default, you just have a few days to make up for the missed loan installments. If you fail to do so, the bank will repossess the property and list you as a defaulter. This will damage your credit report and make it difficult for you to access affordable loans in the future. To avoid going through foreclosure when you are unable to make up for the missed mortgage installments, you should consider a short sale.
Short Sale Explained
A short sale home buyers is the process of selling a property at a lower price than the outstanding balance of the mortgage. The main objective is to avoid having your credit report tainted by a foreclosure entry. If you want to protect your credit, during repossession of your home, you should consider a short sale.
After deciding that you do not have funds to make up for the missed payments, the next thing you need to do is approach your lender with the proposal to short sell the property. If the lender grants permission, you will need to find short sale home buyers.
These are individuals or firms with in-depth knowledge of real estate law and procedures used to acquire short-sale properties. These buyers can also buy divorce, probate and bankruptcy properties as well as rundown properties. If you have any of these properties, consider selling to real estate investors.
Finding an Investor
The first thing you need to check when looking for a buyer is their price. Obviously, you want to get the best possible price for the house. Unfortunately, even if you sell the house at a price that matches your outstanding mortgage balance, you will not get anything from the transaction, you are simply trying to make the lender happy. After all, the selling price is not supposed to exceed the outstanding balance.
You want this nightmare to be over as soon as possible. Therefore, you should compare the closing times of the shortlisted buyers. Those that can close in a week or two should get preferential treatment.
Before choosing a buyer, you should consider negotiating with them. For instance, you can ask them to let you live in the house for a few more months as you seek alternative accommodation. Most buyers will not deny you the chance to continue living in the house provided you pay full rent in a timely manner.
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