Today’s shifting economy has created some hardships and heartache within the real estate market, even in New Albany, Ohio. You may have heard the term “short sale” being used lately with regards to real estate. Many are unfamiliar with what a short sale is. The “short” in short sale refers to a situation where the debt owed on a property is more than the current market value of the property. In order for a property to transfer to a new owner, the seller’s lender needs to agree to accept less than is owed on the home.
Short Sale vs Foreclosure
A short sale can be a way to prevent a foreclosure which is advantageous to both the seller and the lender. The advantages to a short sale include a negotiated settlement with the bank and without attorneys or a court appearance. The seller’s credit is “bruised” but not ruined and you can buy a home again in two years. A short sale inevitably saves the lender money over the cost of the foreclosure process often making it the best solution for all parties.
How Can Kate & Tony Help?
It’s important to have an advocate working for you – someone you can trust who will assist you through the bureaucracy of the mortgage industry. We have counseled and assisted numerous clients through this process. It’s a time consuming process but resolving this in the pre-foreclosure period is far more desirable than dealing with foreclosure. It allows a seller to get on with their lives. Tony and I welcome your questions. Please contact Kate or Tony Thomas for a private consultation if you or someone you know finds themself needing to consider a short sale strategy. You aren’t alone – we can help.