What in the world is a short-sale? How will this affect my credit score? Will I ever be able to buy a house again? If so, when? What if my lender will not allow a short-sale?
All of these are questions you might be asking yourself. Having to deal with the prospect of a short-sale or possibly facing a foreclosure is a very tough time in a persons life. The fact that you are going through this does not mean that you are a bad or irresponsible person. It could simply mean that in this economy, you have fallen on tough times. It's OK! It is not the end of the world. A good real estate agent can help you through the process and allow you to move on with your life while keeping your dignity in tact, and giving you the courage to get yourself ready to re-enter the life of home ownership. I have had extensive training and education in this area of real estate and will be able to help you through the process... Here are some answers to common questions.
QUESTION: What is a short-sale?
ANSWER: A short-sale is when you work out an arrangement with your lender that allows you to sell your home "short" of what you owe on the loan. For example, you borrowed $225,000 to purchase your home, you owe $215,000 on the home, but now the home will likely only bring $195,000 on the open market. Many factors come into play on whether or not you will qualify for a short-sale, but this is basically what the financial side will look like.
QUESTION: How will this affect my credit?
ANSWER: You credit score will likely take a hit. In many cases it will reduce your score by 50-70 points.
QUESTION: Will I ever be able to buy a house again?
ANSWER: Yes, pending your credit rating, income, existing debt, etc. Fannie Mae will allow you to use their products approx. 24 months after the short-sale takes place.
QUESTION: What if my lender will not allow a short-sale on my home?
ANSWER: First of all, lenders do not want to own your home. Therefore, they would prefer to not have your home go into foreclosure. Working with a qualified agent will help with the process, but everything will depend on you and your willingness to work through the process as well as your particular circumstance. If a short-sale does not happen and you can not become current on your loan, you will be foreclosed on. If this happens, the bank will likely take ownership of the home and sell it on the open market. A foreclosure will destroy your credit to the tune of about 200 points and will be on your credit report for 7 years.
My approach is very simple. I will first try to find a way for you to keep the home. If this is not able to happen, I will work with you to put a hardship package together to present to your lender. This will begin the process of the short-sale. Again, my first goal is to help you keep your home. This is the best option for you if you do not wish to move. For more questions on this, please call me or email me. I would be happy to talk to you to see if you are a candidate for a short-sale. Keep in mind, a short-sale is anything but short. This is a long process. It would take up to 8 months or longer to complete this deal. If you are having troubles now, do not deplete your funds before you find a solution. Call me now to discuss.
Steve Blair
REALTOR / Affiliate Broker
SilverPointe Properties
7105 Crossroads Blvd. Ste 102
Brentwood, TN 37027
Cell: 615-479-1639
Office: 615-377-6330
Email: steve@steveblair.net
Website: www.steveblair.net
Twitter: www.twitter.com/BlairTweets
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