Four Interesting Facts About Short Sales

Homeowners presented with the wrong facts about short sales in Nevada are often confused. Should they consider selling their property this way or simply walk away? Although a foreclosure would be easier, the consequences can be felt for many years. That is not a risk you should take when you have other options. Do you need more information about short sales and how they affect your future? This blog can get you started.

1. Short Sale Explanation

A short sale takes place when homeowners sell their house while they owe more on their mortgage then what the home is worth in today’s housing market. Short sales have become a modern occurrence as property values are at a record low, and many people experience a financial hardship.

2. Short Sale or Foreclosure

Many homeowners wonder if it is better to let the bank just take their house. Actually, it is not. A foreclosure has a tremendous negative effect on your credit score. It will be years before you recover. In the meantime, you will not be eligible for financing solutions. Yes, a short sale also has an impact on your credit rating, but you will recover much faster.

3. The Need for a Realtor

Frugal homeowners sell their house without the assistance of a real estate agent. That is impossible during a short sale. Lenders will only deal with professionals who fully understand the process, and are familiar with the rules and applicable paperwork. Although many applications can be completed online, a lot of forms are still submitted by mail or fax.

4. Not Public Knowledge

Unlike bankruptcy, short sale procedures are not public knowledge. Unless you spill the beans, your friends, family, employer, and neighbors remain in the dark. Nothing is written about it on the “for sale” sign, although it could be mentioned on the MLS listings. Short sales in Nevada are more widespread than you think. It has become such a common occurrence that nobody would think less of you, even if the news got out.