It seems like a good idea for people who owe more on their home than it’s worth, but that doesn’t mean it is right for everyone. Should you consider a short sale on your Southern New Hampshire home?
Pros to doing a short sale:
· You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.
· You can still sell your property in a declining real estate market, even if you owe more than the home is worth.
· Buyers sometimes get good deals on the property or may be able to buy a home at market value in a popular area they couldn't previously afford.
· While a short sale isn't ideal, it is typically better than a foreclosure which stays on your credit report for 7 years. (Bankruptcies stay on your credit report for 10 years!)
· If your home goes into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.
Cons to doing a short sale:
· The lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt.
· The bank’s loss is considered taxable income for you, and you may have to pay taxes on the amount. (Consulting a tax professional and an atty is probably a smart move.)
· Short sales do stay on your credit report and may make it difficult for you to a get loan in the future for at least a few years
· You will have to find a real estate agent willing to put in anywhere from several months to a year's worth of work with no guarantee of income.
· Short sales take longer to close than traditional home sales and can definitely be frustrating process.
I can help you decide if a short sale on your Southern New Hampshire home is right for you. Call me today at 603-821-1134 or email me at Dave@DaveHeeter.com for more information about your selling options.
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