Due to the sharp decline in Real Estate and the current unstable economy, many people are turning to short sales to solve their financial problems. For many people who have lost their job, or have found a job opportunity elsewhere, selling their house becomes a major priority. It may be that they only have enough saved up to make one more year of payments, or they may need to jump on the job opportunity as soon as possible. For whatever reason, they need to sell…now.
Unfortunately for a lot of Americans, they’re facing the harsh reality of the fallen real estate market. Selling their house becomes much more complicated, because if their home is not worth the amount they owe on the loan, they will need to do a “Short Sale” on their house. A Short Sale is a simple concept, if a family bought their home in 2006 when Real Estate prices were near their peak, they could have paid $300,000 for their home. Once the market crashed, their home’s value could have stumbled down into the 200’s or even 100’s in value. While they may only be able to sell the house for $150,000 now, they still owe their lender the agreed amount that they borrowed, making the sale of the property come up “short” to cover the loan.
So how does a Short Sale help a financially-bound family? If your house payment is your only concern, then a Short Sale may be the smartest move for you. If you honestly feel that once you’re free of your mortgage payment, you can get your finances together, then it’s worth the trouble, but if not, a Short Sale can overcomplicate your expenses and take up to a year to close!
Short Sales never allow the homeowner to walk away with a penny, so if you’re thinking there is some kind of profit in it, unfortunately there isn’t. Another downside to Short Sales is that your lender may still require you to pay off your balance with them. Unless you need to move, a Short Sale will usually not resolve your financial problems the way bankruptcy can. You may even be able to save your home in a bankruptcy, as well as hold off creditors until you can either liquidate or reorganize.
If you’re feeling underwater and your mortgage is one of your primary concerns, make sure to contact a Killeen or Waco bankruptcy lawyer before considering selling your home. They can tell you what’s best for your overall finances, whereas a Real Estate Agent can only attempt to resolve your mortgage woes.
About the Author: Jeff Davis is the Owner of the Davis law firm and a highly experienced Killeen and Waco bankruptcy attorney. To find out more information about a Killeen or Waco bankruptcy lawyer, please visit www.jeffdavislawfirm.com.