What are the cost for me in a short sale? Or…Does a short sale cost me anything?
The above is a loaded question because a short sale in a lot of ways does cost you, and in others it doesn’t. In a community like South Gate CA where our office is located we try to educate the public as much as possible about short sales and there true costs. let’s go through them as best we can and hopefully this will help anyone who is deciding whether to short sale their home or not, or maybe those who have no choice but still want to be well informed throughout the process.
- Cost to your credit.
Yes a short sale will ding/damage your credit but not as much as a foreclosure. Also your ability to recover from a short sale is easier and faster credit wise then it would be through a foreclosure.
2. Time and energy.
Yes a short sale still requires you to be an active participant in the sale of your property and even more so then if it was a regular sale. You have to, show your property, prepare and send documents to your lender, and you have to take the time to get yourself well informed about your particular tax and debt liability situation.
Yes a short sale costs you emotionally but not as much as a foreclosure. I know you are probably asking how is that? Well look at foreclosure as a forceful involuntary act and a short sale as a voluntary act. What I mean is during a short sale you can dictate when you move out to an extent, you can possibly qualify for financial assistants to relocate and you get too feel that your in control. Even though all the things I just mentioned as positive aspects to a short sale are true, emotionally your still suffering a loss and you have to understand that and figure out a way to cope.
Yes a short sale will cost you financially, now please listen closely. When you take part in a short sale your credit cards will most likely hike your interest rates or cut your credit limits they may even close your cards. You will have to pay higher rates on anything you finance until you get your credit back on track. You might have a tax liability depending on your situation and who you’re working with to resolve it for you. You might still have a financial obligation to your mortgage lender after the short sale if not negotiated correctly. Now as for a real estate commission no the bank pays that. As for negotiation services no they should not cost you anything if you’re working with the right people..
Now above I’ve mentioned a few costs of a short sale, you might be scared in reading them but know that if you went through a foreclosure the cost are always greater and the time that it takes to recover from them is a lot longer. Short sales are a complicated financial transaction and not every agent/broker understands or even wants to deal with them. It doesn’t matter how long a agent/broker has been in the business if they’ve never dealt with distressed properties and all of the issues related to resolving those types of situations for the public then those aren’t the people you want working on your side. We do no cost consultations out of our South Gate CA office 7 days a week and even do in home visits for potential short sale home owners. We have a 98% success rate on all short sales we submit. We have negotiated short sales for all kinds of different companies big and small. we are practicing real estate brokers and list and sale short sales in our every day real estate business. So for any questions or concerns, or to have us give you a free no obligation analysis of your current situation please don’t hesitate to contact us using the info below. Remember we’re here to help you out, we understand this is not a situation you chose to be in and your needs are first and foremost in our mind.
Remember this, a short sale does not mean you can never own another home. It doesn’t mean you won’t ever have good credit again. What a short sale is for most who find themselves facing financial struggles is a first step to a clean start. Don’t ignore the problem cause it will just get worse. Get yourself educated and take action. It is never to late to get help. Just give us a call and we will do all the hard work on your behalf.
Your South Gate, Ca Short Sale Resource
Berkshire Hathaway HomeServices CA Properties
Turning Dreams into Accomplishments by Creating Customized Solutions
Phone: (877) 801-1923 Ext. 101
Fax: (877) 803-3190
Berkshire Hathaway HomeServices