Benefits of a Short Sale
3 Frequently Asked Questions
1-Why would a Columbia SC homeowner want to participate?
2-Why would a lender accept less than what is owed?
3-Why would a Columbia SC buyer want to wait for short sale approval?
Closure: Anticipation of Foreclosure can be very stressful, collection calls, threatening letters, and unwanted visits from the sheriff’s department. This can cause many homeowners to dread answering the door, the phone, or even that walk to the mailbox. Columbia SC homeowners who sell their property before the final foreclosure action have said that it brings an end to the unpleasant calls, letters, and sheriff visits. Homeowners can move on with their life.
Dignity: image the shame and awkward looks from the neighbors when a sheriff’s deputy forcibly moves you out of what was once your home. Image seeing the locks changed by the lender while you throw your belongings in the car or truck. A short sale allows Columbia SC homeowners the peace of mind to have a normal closing and time to move out on their own schedule. In most cases, the neighbors won’t find out that the homeowner sold their home in a short sale.
Less Damage To Credit: A short sale may damage a person’s credit; but it is less damaging than allowing the property to go into foreclosure. settling the debt and ending the delinquent payments allows a person to stop the damage and to start rebuilding their credit score and improving their credit score sooner.
Reduce Inventory: Banks are in the business of lending money, not owning homes. Far too many banks are burdened with too much real estate owned (REO) than they can handle. In many cases, lenders prefer to allow properties to be sold via a short sale than to hold and maintain them in their inventory.
Reduced Expenses: A foreclosure can results in a enormous cost to the lender, borrower, government, and the neighbors. It has been calculated by the Joint Economic Committee that the lender will spend $50,000 in legal fees, court fees, appraisals, maintenance, rehabilitating, insuring, and reselling the property to a third party. Lenders have learned that taking back these properties via foreclosure will often result in more loss, so they are willing to permit a sort sale as a cost-cutting measure.
Bargains: Patient and opportunistic Columbia SC buyers may be able to purchase a property a little below fair market value.
Equity: A Columbia SC buyer of a short sale property may have purchased a property worth more than they paid, thus creating instant equity that can benefit the buyer now or in the future.