Can A Short Sale Stop Foreclosure

A short sale can stop foreclosure instantly in its tracks. In this article I am going to share with you how a short sale can save you time, frustration and your financial status. Many home owners like yourself are unaware of how important to make a short sale a real consideration.

Briefly, let's discuss what is a short sale?

In plain simple English, a short sale is when you owe more on your mortgage than what the house can sell for in today's market. Your lender will allow the new buyer a discount on the amount you owe.

For instance, if you owe a mortgage of $450,000 on your home and in today's market homes similar to yours are only selling for as high as $375,0000, then you are unable to sell your home in this market and may qualify for a short sale. The new buyer will be able to purchase the property at a discount and you will not receive a profit from the sale.

There are some requirements you have to meet in order to apply and to be approved for a short sale so check with your lender or have your real estate agent inquire.

Below are some reasons why you should consider a short sale to stop foreclosure:
- A short sale will enable a lender to sell the home before foreclosure is final.

-A short sale will save you from the humiliation of going through foreclosure procedures.

-A short sale will save your record from having a foreclosure on your credit report for years.

- You will receive no profit from the sale, but your debt will be satisfied.

- A short sale will save you from your credit score plunging, unlike a foreclosure which will cause the biggest credit score drop.

-With a short sale you will not be removed from your home, but can sell the home and leave with dignity.

A short sale can be very complex at times. You definitely need a real estate attorney, but an attorney that has been successful doing short sales. The attorney should be able to explain in detail the steps that need to be taken and what their job will entail from start to finish. The lawyer also needs to be very experience, organized due to all the paperwork involved, aggressive enough to communicate with your lender and an attorney not to busy to go to court for you and or file paperwork on your behalf.

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As a home owner you need to gain knowledge on foreclosures and also using short sales as an option to stop foreclosures. Even if you are using an real estate agent or broker or depending on an attorney, as the owner you need to know the steps in order to make sure everything is being done correctly to save your home. I highly suggest an ebook called "Foreclosure Winning Ways" that will give you the inside strategies and ways to stop foreclosure.
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