Are you a homeowner in danger of foreclosure in Annapolis, MD? Is your home mortgage underwater? If so, a short sale could be your saving grace. It is often the most reasonable way to avoid a foreclosure, which is a situation where a homeowner can no longer make full principal and interest payments on their mortgage. This allows the lender to take over the property, evict the homeowner, and sell the house. These terms are usually outlined in the mortgage contract.
There are stages involved in the foreclosure process. Typically, one month after the homeowner misses a mortgage payment, he/she is considered to be in default and the lender will issue a letter notifying the homeowner of this fact. If the mortgage remains in arrears after three to six months time and the homeowner has not made up the missed payments within a specified grace period, the lender can begin to foreclose on the property. In such situations, it can become difficult for the borrower to catch up on missed payments since the lenders can assess penalties and/or fees for late payments. In many cases, if a payment is 10 to 15 days late, a fine can be charged.
It is important to note that attaining a short sale can be difficult in the current market. However, they often prove to be a simple and efficient way to resolve any debt from a mortgage and/or loan. Not everyone can afford to come out of pocket to sell their Annapolis house fast.
A few years ago, short sales were quite common when the flood of foreclosures hit the Annapolis market. However, as the market stabilized, foreclosures slowed down, and home values have rebounded, many lenders are more reluctant to offer the option of a short sale than they used to be. Yet, they are still happening more often than you might realize, and it never hurts to raise the issue on your own. Suggest the option and see what terms can be arranged. While it may take some work to arrange a short sale, here are some reasons to consider it.
Reasons to Consider a Short Sale
Reason #1: Avoid Foreclosure and the Fallout Associated With It
Obviously, the main consideration is the fact that you can avoid foreclosure on your property. In these situations, the mortgage lender agrees to accept less than what is owed on the home. Therefore, it wipes out any remaining debt owed on the property. Moreover, foreclosure is a serious matter that can lead to many severe, long-term consequences. Case in point, a foreclosure will seriously affect your financial situation and credit score because remains on your credit report for seven years. Also, you will not be able to qualify for a new mortgage and/or loan for at least seven years. The complications will not end there, however. Since your credit score would be affected and you must disclose a foreclosure on a rental application, renting also could be problematic. Given the fact that a foreclosure stays on your credit record for seven years, this action will have significant and lengthy ramifications on your life in many different ways.
Reason #2: Credit and Employment Concerns
As previously stated, a foreclosure will wreak havoc with your credit record and score for many years to come. As such, any high-value purchases, applicants for loans, leasing or buying a car, and renting any properties will be subjected to much scrutiny and difficult to obtain.
You might also encounter employment concerns. Since many prospective employers perform background checks and review credit reports, a foreclosure could jeopardize your job search and/or your current employment status. This is especially true if you work in the financial sector or your job involves money. Under these circumstances, disqualification from an employment opportunity and/or termination by your employer could be the result. This is not a given, but it has been known to happen. Moreover, a short sale wipes out any remaining debt owed on the mortgage, which allows both the seller and lender to move forward. Furthermore, a short sale is also much gentler on your credit score, which will allow the homeowner to rebuild their credit in a much shorter timeframe.
Reason #3: Purchase Another Home Quicker
Given the length and severity of the consequences associated with foreclosures, a short sale can save you from much of the hassle and many of the complications. Since it is much more lenient in terms of the credit effects, a short sale can make it possible to become a homeowner again in a much shorter period of time.
Reason #4: No Fees Involved
One of the best aspects of a short sale is there are generally no fees associated with the process from the lender. Whereas, with a foreclosure, your mortgage lender will often attempt to assess extra fees that only make the process more costly and difficult. Another issue to look out for is that real estate consultants could be collecting a fee for aiding the lender with the foreclosure process. Thus, you must do your research before enlisting a real estate firm or agent to broker the deal.
Who Will Buy My Short Sale in Annapolis, MD?
Our company, Dependable Homebuyers, specializes in purchasing properties that are underwater in Annapolis, MD. We’ll help guide you through the process and advise you on how to secure a short sale of your property in the Annapolis, MD area. For more information, contact us anytime by calling (410) 779-4622 or reach us via our contact form, which is located on our homepage.