What is a short sale in Santa Rosa and Will itWhat is a short sale in Santa Rosa and what does it mean for you?
Work for You?
What is a short sale in Santa Rosa? This question is frequently asked by many homeowners as they seek to understand the dynamics of a home sale. So, what is a short sale in Santa Rosa? This term refers to a real estate sale where the total proceeds of property sale are lower than the outstanding balance of the mortgage secured against the property. In normal circumstances, short sale comes into play owing to the homeowner’s inability to repay the balance owed to a lien, prompting the lien to accept less than what the property owner owes them. Under such circumstances, the security interest holders agree to discharge their lien on the property thus in some cases setting the debtor free from his or her repayment obligation. Property owners can use a short sale as a substitute to foreclosure, considering that it alleviates extra costs and fees for both the borrower and the creditor.
How does a short sale work?
Once what is a short sale in Santa Rosa question has been understood, the next thing should be to understand how the process works and how you can be eligible. To begin with, you need to demonstrate why the mortgage is unaffordable to you as a property owner for you to qualify for a short sale. For example, mortgage is normally considered as “underwater” if a homeowner has an outstanding mortgage debt of let’s say $400,000 but the property is valued at $200,000. In case you intend to sell the home at a lower price than the outstanding balance, it is important to provide your financial details to the lender to allow them determine whether to approve and settle the outstanding debt for an amount less than what is owed.
How can you be eligible?
As you get to understand “what is a short sale in Santa Rosa?” the next step is to understand whether you are eligible. To be eligible for a short sale, one must be experiencing economic hardships resulting from divorce, medical expenses or reduced income. Additionally, the mortgage company can agree to a short sale if you are unable to pay your current mortgage payments or are unable to revise the current home loan. In most cases, the homeowner must have received an offer for the property and not have had a prior approval from the mortgage company to pursue a short sale.
Pros and Cons of a short sale
You can never fully understand what is a short sale in Santa Rosa without understanding the merits and demerits of this process. For one, you will be selling your home for less than the amount owed and this isn’t the best option for both the property owner and the lender. This is especially true if you have been working over the years to build equity. It is however worth noting that a short sale has its own advantages compared to foreclosure since it does not ruin your credit rating completely. On the other hand, unlikeCall today for more information. We can help you solve your real estate needs!
foreclosure, a short sale does not reflect on your credit property for seven years and although it will impact your credit standing score, the effects are obviously different from what you get in case of a foreclosure.
A short sale should come as the last option, considering the disadvantages associated with the process. As the property seller, one of the main cons of a short sale is that it will affect your credit report for a few years. Additionally, it will make future financing harder and lead to higher interest rates when you need to make future purchases. It’s important to discuss your options with an expert to avoid costly mistakes that
could affect you in your future investment plans.
We buy houses in Santa Rosa to help people just like you. Of course you could take your chances selling the home yourself, and you might even come out on top if you structure and package your offering correctly. We’re not saying there is no other way to sell your home, we’re simply offering a mutually beneficial way to sell your home which is the quickest and easiest option around.
Interested? Call us now at (707) 939-9450 to move on with your life.
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