What Are The Benefits of A Short Sale?
A short sale can be a great option for homeowners who are facing the danger of a foreclosure. Short sales allow homeowners to sell their property rather than have it taken away by the bank or lender. Even if homeowners cannot not recover what is owed on the home, they can satisfy the secured debt or mortgage on the property with the proceeds. The seller leaves the process with a much higher credit rating in most cases than if he or she had chosen to let the bank take the home and sell it in a foreclosure process.
Further, there are no up-front fees and costs associated with a short sale, so homeowners save money immediately with this process. The lender pays the fees, closing costs and commissions associated with a short sale.
Short sales are particularly appropriate when a homeowner lacks equity in the home. Those who have found their home values plummeting because of a down housing market benefit particularly from a short sale, which does not harm their credit ratings as much as a foreclosure.