Saturday, May 19, 2012

Why Short Sales are Becoming the Best Option for Underwater Homeowners

Can you short sale your home even if you are not late on your mortgage and may be able to make the payments. In the industry that is called a ‘strategic short sale.‘
A short sale happens just like any other home sale. A Realtor lists the home, an offer is received, you (the seller) decide if you want to accept, reject, or counter the offer. Once terms are finalized the home is pending/ in contract just like a normal sale. You and the buyer sign the contract.
You don't need prior approval from your lender to do a Short Sale.
You DO NOT need to be late on you mortgage to do a short sale. In fact, there is an advantage now in remaining current on your payments.
Beginning on June 1, 2012, the 3 major credit reporting agencies have announced they will change the impact of  short sales on a borrowers credit (assuming they missed no payments and weren’t late) to a ‘neutral’ -- with little to no negative credit ramifications. 

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