What You Should Know Before Jumping Into A Short Sale
For homeowners that are default on mortgage payments, or for those that are underwater on their mortgage, they may explore the idea of a short sale process under the notion that it could protect their credit. The Balance explains that while some agents stand by this mantra, it is only partially true. First, real estate agents shouldn’t make assurances to sellers regarding their credit rating in such a case. Second, one’s credit will, in fact, suffer if he or she falls behind on payments, and let’s face it—most people considering a short sale are in default at least 60 days on their mortgage payments. Thus, before jumping into a short sale, there are a few things to know.
An important question to consider is—what do homeowners get out of a short sale? For some, maintaining some sort of dignity is enough to motivate them to attempt a short sale. After all, there is a stigma attached to “foreclosure,” and guidelines set forth by Fannie Mae make it impossible for those that enter foreclosure to purchase another home for 5-7 years. If sold through a short sale, most are able to purchase a home within 2 years, depending on their credit report.
Even so, there are stressors associated with the short sale process, some of which include waiting for months for a lender to approve a homeowner’s request to begin the short sale process. Next, homeowners must be willing to provide extensive documentation and examination into every aspect of their financial and credit history, as well as accommodate potential buyers. When an offer is presented, it may take a few months for a lender to approve the contract with the buyer. With this in mind, there’s no question that the short sale process requires utmost patience and time.
At Gingold & Gingold, LLC, we believe that while a short sale process might be a good choice for some, it is definitely not the right option for all. That’s why we offer accurate information that will help homeowners make informed decisions regarding short sale, foreclosure and bankruptcy. As seasoned bankruptcy and real estate attorneys serving Atlanta and surrounding areas, Ira D. Gingold and Jamie L. Gingold are uniquely positioned to advise you on your options.
To schedule a complimentary consultation, call Gingold & Gingold, LLC today.
Gingold & Gingold LLC
Atlanta, GA 30309