It may not be ideal to lose your home, but it is always better to lose your home while it still has some value and can help you get rid of the impending debt. A short sale is an important term in the real estate industry. It is a way of avoiding foreclosure, by selling the property earlier, and often at a lower value. This only works out if the lender agrees to it, as you must present financial circumstances that help the lender realize that it is the best solution. Here, we describe some benefits of a short sale that you can get by seeking the advice of an experienced real estate attorney.
Benefits of Short Sale
A short sale happens when the lender allows the owner to sell the home at a value smaller than the debt incurred on the property. It has the following advantages over a foreclosure:
Protecting Credit Record
Although a money lender can initiate legal proceedings to recover the amount lost in a short sale, most banks will settle with the delinquent borrower. This is especially true in instances where the borrower has clearly shown financial hardships, such as a divorce or loss of income due to a failed business or lost job.
Best Result for Lender
A short sale is also a great option for a lender as well, as they receive compensation for failed debts. A foreclosure is costly and may not always bring the price that the borrower owed the lender. The process to foreclosure requires that the lender sends you several notices, prepares legal representation and then wait for you to respond in the court. It is advised that you obtain legal representation for assistance with this benefit, by showing the relevant financial details to your lender.
The foreclosure process can be hectic for you as a homeowner. You receive mail and documents almost every day and it is easy to make mistakes. On the other hand, a short sale is a controlled process. You can seek the help of a real estate attorney and ensure that you identify a smooth ground with your lender. A short sale also requires documentation, but the involved processes are much simpler and work like a typical house sale.
Not being able to pay back a loan produces depression and anxiety. Staying away from a lengthy legal process will help you channel your energies and try to change your current financial situation. A short sale allows you to swiftly reach an agreement with your lender and a chance to move on during a tough financial time. This means that you must seek the support of an experienced real estate lawyer to help you prepare a short sale.
Good for Agents
Real estate agents love to help homeowners who want to proceed with a short sale. Many realtors specialize in helping clients buy and sell short sale homes. This means that they will be willing to work with you to increase their branding in the area.
The ideal legal help will ensure that you achieve success as a homeowner in trouble. Contact Covert & Covert, LLP at (630) 717-2783 or online to schedule a free consultation today and let our short sale attorney help with your case.