Most people understand the difference between a short sale and a foreclosure. With regards to Snohomish WA Short Sale, both the financial backer and the homeowner work towards the same goal – seeking a suitable buyer who’s willing to buy the property for a price that’s agreed upon by all parties. In doing so, the home will avoid foreclosure. This makes it easier on everyone, especially the homeowner, and considered a win-win situation all the way around. The lending institution recovers their money that they originally invested; the buyer gets a new affordable home; and the homeowner doesn’t have to experience the pain of a credit-draining, humiliating foreclosure.
A foreclosure takes place when the lending financial institution seizes a home because the homeowner failed to make the mortgage payments. The financial lender then attempts to sell the home in order to make up for the loss of money that was originally owed on the mortgage. A Snohomish short sales expert can assist the homeowner to quickly sell off their home so they can pay off the remaining balance to the bank. The financial lender will assess the mortgage rate and then decrease it to a mutually agreed upon rate that can be paid-in-full by implementing the home’s short sale price.
Are there any disadvantages of using a short sales approach?
There are hardly any disadvantages of utilizing a Snohomish WA short sales specialist in order to sell your home rather than letting it simply go into foreclosure. Even though you’ll end up losing your home in either case, you can hang on to your credit rating and empower yourself by working with your financial lender to short sell your property.
In fact, there are several benefits in choosing to take the short sales approach. Your credit will have a much greater chance of remaining intact by selling your home and subsequently paying off the balance to your financial lender rather than simply giving up and letting your home go into foreclosure. Your credit will be damaged with a deficiency judgment for several years down the road and may ultimately cause even further debt. Plus, by eliciting the expert help of a Snohomish short sales specialist, you’ll maintain more control over a dire situation rather than legally being ordered out of your house by the court system and local police.
One last benefit of choosing a short sale over foreclosure is government incentives. A few programs including the Home Affordable Foreclosure Alternatives program offers as much as a couple thousand dollars at the time of the short sale close. This not only boosts the general economy, but ultimately assists people in literally saving millions of dollars in lost funds and court fees.