If you’re wondering how a short sale can benefit you in Miami, you’ve come to the right place! It’s definitely an important matter to consider!
In this article, we’ll focus on answering that question and how you, as a Miami homeowner in Florida, can use the information to your advantage and know what your options are during foreclosure or if you’re underwater on your mortgage.
But, if you’ve already had enough and just want out from under your house, check out our website >>> We Buy Houses Florida!
What Is A Short Sale?
And, how does it benefit you?
A short sale can be a smart way to bypass foreclosure and the anxiety it can cause. Here’s a simple definition that explains it quickly if you’re not 100% certain.
In real estate, a short sale is when a homeowner in financial distress sells his or her property for less than the amount due on the mortgage.Investopedia
Although a short sale can be a little complicated to obtain in today’s market, they often prove to be a more straightforward way to resolve any debt left over from a loan.
A couple of years back, short sales were a frequent occurrence caused by a sudden flood of foreclosures that hit the Miami market. Nowadays though foreclosures have slowed down and home values have risen slightly in response. As a result, lenders are a little less likely to offer a short sale as an option. But don’t lose hope! That doesn’t mean they don’t happen at all! You can still avoid foreclosure through a short sale in Miami.
Reasons why a short sale is beneficial:
Avoiding Foreclosure and the Damage it causes.
Without a doubt, the main reason a short sale is advantageous to homeowners in financial distress is that it lets you avoid a foreclosure on your home. Plus, your mortgage lender agrees to accept less than what you owe, leaving you in a better position financially, and without the responsibility of debt that you cannot pay off.
Foreclosure can lead to all kinds of financial problems, starting with the inability to gain approval for a new loan or mortgage. Foreclosure can damage your credit score for several years, meaning you may be forced to wait a shockingly long time before you can qualify for a new mortgage. Even renting can become a challenging ordeal as you usually are required to disclose a foreclosure on a rental application.
The effects of foreclosure don’t end there. The consequences of a damaged credit score are long-lasting and countless. From purchasing a car to renting a house, any purchase that may have been possible through the regular bank loan route will become unattainable.
If you work with money or handle company finances, you could even face termination of your contract if your employer feels you may be unfit for the position. Most employers won’t respond as harshly as this, but it has happened before.
A short sale dismisses the debt that cannot be covered with the proceeds from the sale, letting both the bank and the seller move on. A short sale is also easier on your credit score, which will allow you to recover financially in the long run. In comparison to foreclosure, the damage done to your credit rating will be minimal since your credit report will only show a pre-foreclosure status.
Buying a New House.
As mentioned above, foreclosure lasts for an awful amount of time, ensuring that attaining approval on a mortgage application is impossible for up to 7 years.
The silver lining here is that short sales offer you more flexibility and freedom.
Depending on the bank, you will be allowed to submit new home applications only two years after the filing. A mortgage lender will also be far more likely to approve your loan if you opted for a short sale rather than allowing your previous property to fall completely into foreclosure. This means you can get back on the mortgage ladder quickly and ensure a safe home for your family.
Again, this all depends on the actual bank or lender you approach. If a specific branch is giving you a hard time a year or two after a short sale, don’t hang about hopelessly disappointed. Get on the phone to another bank and find another lender to work with.
Usually, No Fees Involved!
Another potential benefit of a short sale is there are usually no bank fees associated with the process. Within the foreclosure process, your mortgage lender may throw in extra fees that only worsen the situation. Plus, some real estate consultants may charge an arm and a leg to facilitate the foreclosure between you and your bank. So, make sure you check before enlisting a real estate agent or firm to support you.
A better option by far (depending on your situation) is to suggest a short sale. If you can prove without a doubt that your house is “underwater” – meaning your remaining mortgage balance is more than the total value for your house – your bank may prefer to arrange a short sale instead, especially if your only other option is to abandon your home and let it fall into foreclosure.
Our company, Sunshine State Buyers, may be able to guide you in the right direction here. Check out our website >>> We Buy Houses Fast Florida!
We can offer advice and information, which will give you the best chance at successfully getting a bank to approve a short sale on your Miami house. Don’t hesitate to connect with us by calling (305) 916-3328 or shoot us a quick email via our contact page found here.
Approval for a Short Sale: What You May Need To Provide
To get started, you will need to provide evidence that you cannot afford your mortgage payments. This can be especially tricky, and the best solution we know of is to find a qualified real estate attorney in your area that has experience dealing in this area of law.
If you’re not sure who to contact or know for certain if a short sale is an option for you, get a hold of us! We don’t charge for consultation or advice. We would love to discuss your situation and let you know what your options are.
We offer FREE guidance and tips. There’s absolutely no obligation!
Depending on your case, we might even be able to do the work for you or support you further by purchasing your property from you, so you can finally get out from under the crushing weight of your mortgage. Get in touch now, and we may be able to offer you a viable solution that matches your situation.
We buy Florida houses, and we work with home sellers like you who are struggling to get out of their house the traditional way. Maybe you can’t afford to list your property with an agent or don’t the hassle and stress. Either way, get hold of us anytime, and we can discuss your situation. We’re here for you!
If you would like to know what we can offer for your property, click the link below and fill out the short form on the next page. We’ll make you a NO-OBLIGATION cash offer on your property in 24 hours. Then, you’ll know straight away if our offer can work for you.