If you’re facing the daunting prospect of foreclosure, a home short sale might be the right solution to save your credit score and position you more favorably for future loans.
By selling to a professional home buyer such as Cash4Homes, you can take advantage of several benefits that preserve your finances and your peace of mind.
Here are some reasons why you might want to consider a home short sale.
After foreclosure, there’s always a risk that the lender may sue for a deficiency judgment. In addition to the impact of the foreclosure itself, the deficiency judgment appears on your credit report and drives your score further down.
However, banks are open to you making a short home sale, saving you disastrous credit score penalties and their downstream effects on your financial positions. For the lender, this means they can avoid litigation processes that are often lengthy and costly, provided you can prove you’re going through a valid hardship.
A foreclosure leaves a mark on your credit report, and the effect can last anywhere from five to seven years. This means it becomes difficult, and in some cases impossible, for you to borrow money to buy another home or make a major purchase.
A home short sale prevents this. While it still shows up on your credit report and affects it negatively, a home short sale has a much less severe effect.
Apart from being able to borrow money for large purchases such as cars, you’ll also be eligible to borrow money for a new home in a much shorter time frame.
You’ll also avoid the social stigma that comes with having undergone foreclosure, removing an extra hurdle in your path to financial recovery.
The average legal cost of a home foreclosure can be around $7,500. In the end, the homeowner is left with steep legal expenses and bad credit, making the process of financial rebuilding difficult.
A home short sale can help you avoid landing in this situation, as a new buyer in a more positive financial state can absorb a significant portion of what you owe to your lender.
After avoiding legal fees and protecting your credit, you’ll be in a far better position to get yourself back in good financial standing.
Unlike selling to an agent who simply lists your home for sale, selling to a professional home buyer means you have a much smoother experience.
A professional home buyer is able to make you an offer quickly, usually within 24 hours if you sell to Cash4Homes, and the negotiation process is simple and straightforward.
From the day your lender initiates the foreclosure process, you’ll receive constant demand letters and other documents that may only confuse you more. And that’s compounded by non-stop exchanges with the lender’s legal team, often with little room for you to negotiate.
A home short sale to a professional home buyer helps you to avoid all this. While there may still be negotiations and a fair amount of paperwork involved, the process is much less taxing.
A home short sale is largely similar to a traditional sale, so many of the processes will be familiar to you.
If you’re facing foreclosure and worried about the consequences, a home short sale is an effective solution for getting over this trying period. At Cash4Homes, we can give you a fast and fair cash offer on your home. We handle all the difficult tasks so the process is as simple as possible for you. Contact us today.
