Is a Short Sale Right for You?

As our country seemingly reaches an economic stalemate, we are finding ourselves in situations that are less than financially appealing. What we do not realize, however, is that these situations can sometimes stand to jeopardize our livelihoods altogether. In an ugly world of job loss, declining market value and foreclosure, the days of the white picket fence seem to drift farther and farther away.

If keeping up with your mortgage becomes increasingly difficult and borderline impossible, don’t give up hope altogether. While not the best-case scenario, and yet far from the worst, consider a short sale as a means to cut your losses and keep credit damage at a minimum. Simply put, short selling your home means selling your property for less than the balance owed on the property’s loan. While neither the borrower or lender profit, it is a mutual agreement that, when done right, can avoid serious ramifications on the borrower’s behalf. As opposed to a foreclosure, a short sale will appear on a credit report as a debt settlement and not a “paid-in-full.” You will receive a lower credit score and have to pay higher interest rates for borrowing down the loan. Nevertheless, while notice of the settlement will remain on your report for seven years from the initial default date, a short sale will harm your score drastically less. If all goes according to plan, the difference on what you sold the house for and what you owe will be forgiven.

According to the National Association of Realtors, short sales and foreclosure account for a whopping 40% of all homes sold today. With that said, maybe it is time for you to consider a short sale as a sensible alternative to facing property foreclosure down the line.

I am available day or night to offer you the help you need in dealing with this delicate situation. I have over ten years of real estate experience, including dealing with short sales, and am ready and willing to negotiate with the mortgage company/ies for you and your family. The FHA does not currently have a policy regarding the time required to obtain a new FHA loan and reestablish your credit score. This means we can get you out of your property snare and into a new life as soon as humanly possible.

All the best,
Travis Senenfelder
651-216-9466
BSL Real Estate
440 2nd St.
Excelsior, MN 55331