What is a short sale and how does it benefit you here in Portland?
In this article we’ll dive into that question so you as a Portland OR home owner can tell what your options are during foreclosure.
What is a Short Sale and How Does it Benefit You?
A short sale can be a smart way to mitigate foreclosure 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 really common in the market a couple years back when a flood of foreclosures hit the Portland market, but as foreclosures have slowed down and home values have begun to climb back up, lenders are a little less likely to offer a short sale as an option.
Here are a few reasons you may want to consider short sale on your Portland home
You Avoid Foreclosure And The Harmful Effects Of It
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 lead to all kinds of financial problems, starting with the inability to obtain a new loan for a home. A foreclosure will stay on your credit record for up to 7 years. Even renting will become more difficult as your credit score would be affected and you often have to disclose a foreclosure on a rental application.
With a foreclosure, you face will all kinds of ramifications with your credit. Buying a car and renting a house may be impossible through normal bank loan routes.
If you work with money at your job you could even face termination. This isn’t usually the case but it has been done before.
A short sale relieves the debt that is left over from what is owed on the mortgage, letting both the bank and the seller move on. A short sale is also easier on your credit score, which can allow a homeowner the ability to recover in the long run. Your credit report will only show a pre-foreclosure status, which reduces your credit rating minimally compared to a foreclosure.
Buying a New House
A foreclosure can last for a long time, making it impossible to purchase a mortgage again for up to 7 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.
Again, this all depends on the actual bank or lender you’re working with. If after two years you are still having difficulty, find a new bank to work with.
Usually No Fees Involved
One potential benefit of the short sale is there are usually no fees associated with the process from the bank. If it can be proven that you owe more than your house is worth and that you’re at the risk of walking away from the house, the bank may rather work out a short sale instead of going through a costly foreclosure. Conversely, with a foreclosure your mortgage lender may tack on extra fees that only make the damage worse.
Some real estate consultants may charge a fee for helping facilitate the foreclosure with your bank, so check with them before you enlist a real estate agent or firm for help.
Our company, Portland Wholesale Property may be able to guide you in the right direction to give yourself the best shot at a bank approving a short sale with your Portland area house. Connect with us by calling (503) 334-4150 or email us through our contact page.
Getting a Short Sale – What You May Need To Provide
You will have to provide the bank with proof of being unable to pay your mortgage payments. This can be difficult and is best resolved by finding a good real estate attorney in your area that has experience dealing in this type of law.
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, turn to us. We won’t charge a thing to discuss your situation with you and let you know your options. Sometimes we’re even able to buy the house from you to get you out from under that mortgage.
We buy Portland houses and we work with home sellers like yourself who are having troubles getting out of their house the traditional way, or those who can’t (or don’t want to) go the usual route of listing with an agent.
Get a hold of us anytime to discuss your situation. We’re here for you!
If you want to see what we can offer on your house, click the link below and fill out the form on the next page. We’ll make a no-obligation cash offer to you within 24 hours.