Unfortunately, the U.S. economy has seen a number of ups and downs over the past decade-plus. The recession of 2008 in particular had a damaging effect on the housing market. That has taken a real toll on homeowners, leaving many in a position where they can no longer afford the homes they have purchased. Because of this, short sale home sales have begun to occur with more frequency.
What is a short sale?
This is a sale in which a home is sold for less money than will cover the remaining amount of loan debt that is owed on the home. In 2009, the Making Home Affordable Program was rolled out by the United States government. This program was designed to allow more homeowners to engage in short sales and while doing so, be forgiven of the debt.
A short sale is definitely not an outcome you would typically seek out as a homeowner. There are negative credit implications associated with a short sale, and it certainly is not pleasant to think about the prospect of giving up your home. But there are many life-changing circumstances that leave homeowners with no other real alternative. For instance, if there has been a death in the family which has either removed an income source or created additional expenses (or both) then a short sale may be the best available option.
Or perhaps a medical issue has forced a member of your family to not be able to work. Maybe someone has lost their job altogether due to their employer experiencing layoffs, closing down, or for some other reason. In any case, the short sale of a home may quite simply be the only viable choice for a homeowner who has fallen too far behind on their monthly mortgage payments.
In most short sales, you will need to begin by preparing a variety of information to share with your mortgage lender to prove that you are experiencing financial hardship. This will include things like payroll stubs and tax returns so that the bank can validate your financials.
From there, the waiting – and there is a lot of it – begins. You will wait up to a month for the bank to acknowledge that they have received your financial information. Then the bank will assign a negotiator, which could go quickly or could take up to a month as well. A broker price opinion, which is similar to an appraisal, will be ordered. The file will be sent for approval after this is reviewed, and that may take another month. Then, even if all of these steps have been completed, your buyer could still back out of the process, leaving you with a house you cannot pay for and no clear direction on what to do next.
This is one of the dangers of trying to short sale a home – buyers can back out and often do with much frequency.
This is where an as-is cash home sale can be a solid alternative to the short sale process.
One benefit of an as-is sale is that it eliminates all the waiting that comes with a short sale. A cash home buyer will make you an offer within 24-48 hours of inspecting your home. Once you have accepted the offer, they will help move you towards a fast closing process. There is no time spent preparing paperwork for the bank, no time spent waiting on the bank to appoint a negotiator, no time for a BPO, etc. It really is all about getting cash for your property fast.
That is another benefit of going the as-is route rather than going with a short sale. As noted earlier, lots of preparation with short sale homes can still lead to you being stuck with the property when buyers cancel. With an as-is sale, this concern is erased. Your home buyer is promising to give you cash that you can use to pay outstanding debts and to do so quickly, with no fear of them backing out at the last minute.
If you are struggling with your home payments due to a factor like a lost job, a death, divorce, a medial issue, relocation, or some other factor, then a short sale of your home might just be a viable consideration. But if the length of a short sale or the uncertainty associated with buyers potentially not following through on their offers has you concerned, then an as-is sale might be exactly what you are looking for. You can get fast cash for your home so you can begin focusing on paying down debts and starting over rather than focusing on whether or not a short sale buyer will consummate their purchase of your home.
Get cash for your house today! Just call 314-926-0660 or fill out this form.
