Your home isn’t worth as much as you need it to be worth in order to sell it and make a profit. You know that selling it may not even cover the remaining debt on your mortgage. Rather than continuing to pay large sums for a home that has significantly decreased in value or trying to sell your home and pay the difference, one option is a short sale.
A short sale is a good option if you cannot get a loan modification, are unable to pay your existing mortgage and are facing foreclosure in the future. Short sales do require your lender to agree to take a payoff that is less than the mortgage you owe, but they’re a viable solution for homeowners in a pinch.
The good thing about a short sale is that it tends to be seen as a “win-win” option. Banks save money by not having to foreclose on your home. The lender gets at least a portion of what they are owed, rather than losing out completely. You get to walk away without having to pay back any further money and won’t have to have a foreclosure on your record.
It’s a good idea to talk to your attorney about compiling the documentation you need to seek a short sale. It can be hard to negotiate with lenders and banks, but your attorney has the experience that will help you demonstrate to your lender that a short sale is in their best interests as well as your own.
Our website has more information on short sales and why they can be beneficial in situations like yours. This is one option that may help you avoid foreclosure and move forward without further liability.