Short Sale Orange County, CA
Are you facing a short sale Orange County, CA? It may be through no fault of your own, but with changes in the economic climate and the housing market, thousands of homeowners risk losing their homes every year due to getting behind on their mortgage payments. This process can be stressful and upsetting, and it can come with other damaging outcomes, such as losing savings and damaging credit scores. There is a much safer and less frightening way to resolve this issue, and that is pursuing a short sale.
What is a Short Sale?
If you’ve ever wondered what a short sale is, it protects vulnerable homeowners in the situation where they cannot make their mortgage payments. A short sale may be the least problematic and stressful option a homeowner has in this situation. In a short sale, the homeowner contacts a third party who would potentially purchase the property from them. As soon as a short sale is successful and has been approved, the mortgage lender, which is the bank in most cases, will receive all of the proceeds of the sale.
How Does it Work?
A short sale tends to be less than the amount remaining on the mortgage. Sellers decide on a short sale because the risk of doing it is less than that of a foreclosure. The amount of the sale goes straight to the lender who lent the borrower the mortgage. Luckily the difference between the sale price and the remaining balance on the mortgage, also known as the deficiency, is usually written off. There is legislation in place that protects short sale sellers from deficiency judgements issued by the lenders.
The term short sale comes from the fact that the property is being sold at a loss. The lender of the mortgage must sign off on the choice of a short sale, and it is commonly known as a pre-foreclosure. However, that isn’t as bad as it may sound. A short sale does not affect your credit rating as badly as a foreclosure would, as a short sale is voluntary by the lender to get ahead of the problem. On the other hand, foreclosure is forced by the lender and involves seizing the property. This will stop you from being able to purchase another home in the future. However, a short sale allows borrowers to purchase another home in the near future.
What are the benefits?
On top of preventing foreclosure and protecting your credit rating, there are other positive aspects of a short sale. These include saving you money and benefiting the housing market. A short sale makes it easier for buyers to purchase more affordable homes and reduces the number of homes lying idle due to foreclosures. Going down the short sale route will also protect you from scam artists who prey on vulnerable homeowners who are facing foreclosure.
If you still have questions about what a short sale is, or you have found yourself in a compromising situation, you can contact us for assistance. We are here to help. We buy houses in Orange County, CA and Phoenix, AZ in any condition. We are an honest and ethical company, and we try our best to make sure all parties involved are satisfied. Getting in touch is hassle free, and there are no sales pitches. Let us help you with your short sale or other real estate needs today!