Chicago has faced a rise in foreclosures this year, and many face the looming shadow of the threat of foreclosure on their homes. In this guide, we aim to shine a light on another option open to those who need to sell fast.
A short sale is where you sell your house for less than what you owe on the mortgage. In this article, we'll share five advantages of short selling your home.
1. It Helps You Resolve Debt Worries With Your Mortgage
Do you find yourself owing more on your mortgage than your property is currently worth? That can happen sometimes - commonly known as an underwater mortgage.
The most likely scenario is that property prices have plummeted in your area. When that happens, a short sale can be a helpful solution. It will ease the burden of the debt.
2. It's a Way to Avoid Imminent Foreclosure
A short sale may be your best alternative when facing the financial distress of foreclosure. With a short sale, you have more control during the selling process. Plus, it's easier to negotiate your terms.
It's shorter and less complex than a foreclosure. And you won't feel the psychological stress or stigma of facing a foreclosure process.
3. It Can Minimize Your Credit Score Impact
If you have trouble paying your mortgage on time and have made late payments, that will have already impacted your credit score.
A foreclosure will have an even more detrimental impact on your credit score, and it could make it much harder to buy a house in the future.
While a short sale can impact your credit score, it's a less severe impact than a foreclosure.
So it's worth weighing up the hit, given that you won't be in foreclosure, nor will you further damage your credit score via late or unpaid mortgage payments.
4. Potential Cash Incentives
Lenders favor short sales over alternatives like foreclosures. You may find that some lenders will offer financial incentives to make a short sale more appealing, and these can be a helpful extra.
For example, the cash could cover relocation costs, making the sale and move financially more viable. It also eases the stress of moving home, particularly when you are doing so because of financial strains.
5. The Short Sale Process Protects the Housing Market
If you are interested in property prices in Chicago, opting for a short sale is a good idea. It helps lower the number of foreclosed properties on the market.
When there are high numbers of foreclosed homes, they can have a detrimental impact on the rest of the market. In contrast, a short sale will keep the market stable and healthy.
That's important for any future investments you make in the area, whether renting or buying.
Short Selling Your Home: A Solution Worth Considering
Short selling your home could be the solution you've been searching for. If you are struggling with payments and worry about foreclosure, explore the options available with a short sale.
Our GC Realty and Development LLC team can help you get the information you need. To discuss your circumstances with one of our team, contact us here.
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