When a property is sold for an amount that is less than it is worth or less than the balance owed to the bank (with the approval of the lender), it is referred to as a short sale. The funds acquired during this sale are given to the mortgage holder and applied to the balance you owe. Though short sales are often associated with foreclosure, it is possible to sell your home in this manner without a foreclosure being initiated. Learning more about this type of transaction along with reasons to consider a short sale may help you to better secure your financial future.
Divorce
A divorce is one of the most expensive financial transactions a person can expect to go through in his or her lifetime. Not only do you have to navigate the emotions associated with ending a marriage or establishing custody of children, you must also figure out a way to divide marital property. When a couple jointly owns a home and neither wants to surrender their interest to the other party, selling may become the only reasonable option. A short sale is a way to sell your property, quickly satisfying both parties and resolving one of the most complicated aspects of marital asset division.
Emergency Move
The average person in the United States can expect to move approximately 11 times throughout his or her lifetime. It is not unusual for a person of any age to need to move for an emergency reason that is not necessarily tied to finances. As the number of senior citizens throughout the country increases, many people find themselves needing to provide sudden care for aging loved ones. A prolonged visit could quickly turn into a permanent arrangement, and a short sale can benefit a person who needs to sell a home quickly so that he or she can make a relocation official.
Financial Trouble
Even though you might not be facing foreclosure, it is possible to find yourself in a difficult financial situation that your existing mortgage makes worse. Losing a job, being transferred to a less lucrative position, or another financial hardship could all make a short sale a better option for you than a traditional property sale. This is especially true if you are having problems keeping up with homeowners association fees, the property value in your area is stagnant or dropping, and you do not believe you will be able to stay current on your mortgage payments for much longer.
Talk to an Attorney
Deciding whether or not a short sale is the best option for you is something that you should do with the assistance of an experienced short sale attorney. An attorney can review all of your available options and give you realistic advice regarding whether negotiating with your bank or selling your home will provide the long-term relief you need. The attorneys at Resnick Law P.C. understand how stressful this process is and we work on your behalf to help alleviate your burden. Contact us today at (248) 642-5400 to schedule an initial consultation so that we can begin providing you with the help that you deserve.
(image courtesy of Max Sandelin)
