What is a Short Sale? And How Can It Help with Debt?

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A Short Sale

A sale of a home when the proceeds do not pay off the full amount of a loan or when a lender accepts the payment to pay off the loan is a short sale. These types of sales are perfect for individuals who are struggling to pay off a debt or facing foreclosure.

There are many benefits to this type of sale for those who owe a large amount of debt or have various loans or lenders seeking payment.

The Benefits of a Short Loan

Being able to pay off your debt is the greatest appeal of a short loan. There are many other benefits to a short loan.

The main one is by paying off your debt without have your home foreclosed. Avoiding foreclosure is key since having a foreclosure on your credit report will have a negative impact on your credit score.

You are not the only one who wins in this instance. Your lender also wins by avoiding foreclosure proceedings. They tend to take up a lot of time and are very costly. In fact, the proceedings alone can cost the lenders more than the home is worth.

Buyers of the home also benefit. They can rest assured that the cost of the home is at fair market value.

How to Conduct a Short Sale

Initiating a short sale is not as difficult as some would assume. Mortgage lenders are more agreeable to the idea because of the reasons listed above. They would rather have a discounted mortgage payment than not be paid at all.

When conducting a short sale, it is best to consult with a professional who can act as a go between you and your lender. A professional loan modification expert will be able to convince your lender of your hardships (i.e. loss of job, illness, or divorce).  They can negotiate the sale price your lender is willing to accept.

Short Sale in NY

For New York residents in need of a short sale can look to USA Modification. We provide free consultations for our clients to find the best route for your financial situation. Please contact us today for your free consultation by calling 888.850.7075. Or visit our site to learn more about short sales or home loan modification. We look forward to working with you.

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