You hear about it all the time and houses on your block are now going up on a “short sale.” But what exactly is a short sale? Are there pros and cons of listing your home for short sale? Is there a better option? We can help to answer all of your questions about short sales. Let’s get started!
What is a Short Sale?
A short sale is when a home is listed for sale at a lower price than the amount remaining on the mortgage. This typically happens when a homeowner needs to avoid foreclosure. In order for you to sell your home on short sale, you must get approval from all lenders or banks before listing the property.
Pros of a Short Sale
One of the main benefits of a short sale is that you can pay off your mortgage without liability for the amount still owed on the loan. A short sale will help you pay off the mortgage instead of have a foreclosure on your credit. It also won’t show up as a foreclosure on your credit report, leaving your credit somewhat intact. While your credit will take somewhat of a hit because of the defaulting of a loan, it will be able to recover in a year or two.
Cons of a Short Sale
One of the major drawbacks of a short sale is the negotiations. It can be a hard sell if there are two mortgages on the property as both lenders must approve the sale. It can also be difficult to convince your lenders to take a loss on the property so beware of negotiations. This option also doesn’t give you the option to stay in the house. If you sell your home on a short sale, you will be expected to leave directly after escrow closes. A short sale can also generate taxes on the amount of sale proceeds from the sale if the amount is short of what you owe. If you borrow money against your house for money is not going into the house and the money is forgiven in the sale, it can be taxable. But if you face this situation and can prove you were legally insolvent at the time of sale, you won’t have to pay the taxes owed.
Short sales are messy and extremely complicated if you do not have help to negotiate them properly. But we can help you sell your home in a timely manner without dealing with the mortgage companies. negotiating with the mortgage companies and let us help you sell your home and pay off your debt. For more information on how we can help, call The Team Edge today!
Ready to sell your Maryland home fast with the Team Edge?
If you need to sell any type of property in Maryland, call The Team Edge. At The Team Edge, we’re dedicated to providing you with the best possible home-selling experience in the fine state of Maryland. Call our 24/7 hotline today at 443-840-7100 or fill out our quick and easy online application to get started on selling your Maryland estate property immediately. No matter the state of the estate, The Team Edge is here with a fair price and fast service. That’s right. Sell your house quick, as-is with the Team Edge!
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