How To Conduct A Short Sale Of Your Home

April 7, 2011 by  
Filed under Short Sale/Loan Modification Blog

How To Conduct A Short Sale Of Your Home

If you are thinking about foreclosing on your home, you should consider doing a short sale first.  Filing for bankruptcy not only destroys credit, but let’s be honest here, it carries with it a certain stigma that is somewhat shameful.   Regardless, many feel this is the only option if upside down on mortgage payments.  But there actually is another option: a better option.

A short sale is an agreement between the lender and the borrower in which the lender agrees to accept half the total amount do.  Lenders will complete short sales for a few reasons.  First off, they will no longer have to chase borrowers for payment.  Second, they will avoid the costs and troubles of foreclosing on the property.  Though some lenders will not consider a short sale, borrowers should definitely inquire before agreeing to foreclose.

If a short sale sounds right for you, the first thing you must do is contact the lender and suggest the idea.  If he agrees, call a real estate lawyer and inquire about the legal ramifications of following through with the short sale.  Finally, reach out to an accountant and ask about possible short sale taxes.  So before you even consider foreclosing, make sure to question the lender about a short sale.  You’ll save yourself time, money, bad credit, and a heck of a headache.

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