A short sale occurs when you as a homeowner are having trouble making your mortgage payments on time. Instead of allowing the mortgage company to foreclose on your home, you instead apply for permission to sell your home for less than it is worth. In most cases, the bank will then discharge the remaining amount. This allows both you and the bank to avoid a costly foreclosure. If you can no longer make your mortgage payments, contact a Miami short sale attorney to see if short selling your home can help you avoid foreclosure.
A short sale is usually a great choice for everyone involved with the property. For the homeowner, it allows them to escape a mortgage they can no longer afford to pay without having a foreclosure on their credit. A foreclosure is devastating to your credit score, so avoiding that with a short sale is worth it. With high foreclosure rates throughout the country, banks do not want to foreclose if they can avoid it, either. Filing for foreclosure costs the banks a good deal of money, and also reflects badly upon them. Foreclosure means that they take ownership of the home and are required to make tax payments on the property. The bank then has to sell the house to try to recoup their money. With housing prices still very low, selling the home rarely yields enough money to cover the remaining mortgage and the cost of foreclosure. With a short sale, the bank usually gets far more money back and is able to avoid the cost and hassle of filing for foreclosure. The buyer also comes out on top. They purchase the property at a low price, usually far below market value. Since the owner voluntarily sells the home, they do not have to worry about evicting previous owners or replacing appliances that are often stripped from foreclosed homes. A short sale is usually in the best interests of all parties involved.
Short selling your home can also help you protect your credit score, which is very important in today’s economy. A poor credit score can affect your ability to borrow money for any reason and means you will pay higher interest rates when you do borrow. A low credit score may also reflect poorly on you when you are applying for a new job, particularly if you will be dealing with money or have access to sensitive information. However a short sale will not save your credit score. Selling you home in this fashion does mean the lender is forgiving some of your debt. You could be liable for taxes on that amount, and your credit score will still suffer. A short sale is not nearly as bad as a foreclosure on your credit score. Contact a Miami short sale attorney if you thing that selling your home through short sale is in your best interests.