There are many myths surrounding short sales, and trying to decipher fact from fiction can be quite a challenge.
Having the correct information and knowing all your options is the only way to know if a short sale is the right choice for you. One of these myths is you have to be behind on your mortgage to do a short sale. This is not true. I am doing more and more short sales where my clients are not defaulting on their mortgage.
While there are many reasons why a homeowner may want to continue paying their mortgage, the two main benefits are saving their credit, and being able to purchase a new home without delay.
Credit Impact of a short sale
In a short sale, it’s not the actual short sale impacting your credit score the most. Instead, it’s the late payments leading up to the short sale. By staying current, you don’t have any of these late payment credit hits. Therefore, you keep your credit intact. Once the house closes, you will get one ding on your credit for the actual short sale, but that is it. This can make a huge difference on your credit score.
Buying a new home after a short sale
By staying current and not defaulting on your mortgage, you can purchase a new home immediately after the short sale closes if you qualify. There is no waiting period.
The bank pays you $3,000 to do a short sale
You can be eligible for these programs if you are current or behind on your mortgage payments. The government Home Affordability Foreclosure Alternative (HAFA) program pays qualified homeowners $3,000 to do a short sale. If you don’t qualify for the HAFA program, some of the banks are now offering their own Relocation Assistance programs, and offering incentives up to $3,000 to the homeowner. I am having more success than ever before with getting our clients $3,000 at closing.
Staying current can be a huge benefit to homeowners, who need to sell their home, but are upside down. Staying current also offers them the opportunity to get out from under an excessive mortgage, escape damage to their credit, and purchase again right away.
Staying current may not be the right option or even a choice for some homeowners. Many homeowners doing a short sale are having financial difficulty, and have already missed several payments, or may even have a foreclosure notice by the time they start the short sale process. The good news is these homeowners are usually eligible for the $3,000 HAFA program or bank incentive.
Remember, there is no fee to the homeowner to do a short sale. The bank pays the Realtor fees and closing costs.
To find out if you qualify to do a short sale, while staying current on your mortgage, and for the $3,000 relocation assistance program, contact me today at (602) 571-6799. You also can send an e-mail to Lorraine@ArizonaShortSaleToday.com, or view the Web site at www.ArizonaShortSaleToday.com.