The ‘Short sell’ is a term used in many real estate circles, and the short sale of your home is a last ditch effort to prevent foreclosure. Probably to worst thing that could happen, is not being able to take care of your debts, and this is one of those things that in some worst case instances people have taken their own lives. It is sad thinking about having your home go into foreclosure, losing your car, and it is no wonder why so many get despondent.
If you are facing foreclosure and don’t know what to do, there are some options you can use to save you from bankruptcy or having a big fat black spot on your credit. It is called the short sale. It is basically giving up your home for the amount you owe, and walking away from your debt. If you owe more than your home is worth, then your lenders will have to accept your home and take the loss.
Now this is something that is a lengthy process, and you will have to open up and spill your guts out to people who are not your family. In the long run, it is better than having a foreclosure or bankruptcy on your record, and could even save your credit rating. If you are going to do this, you should start as soon as you can, and here are some things that will help you.
First thing you should do is educate yourself on what a short sale is and how much is involved. One way to do this is to sit down with a Realtor who is experienced in the short sell process. The more experienced they are, and especially if you know them, they can act as a liaison between you and your lenders. They can also help you with all the calculations, like what your debt is on your residence compared to its value, as well as any other debt against it.
Since every state has different laws about foreclosure, it is a good idea to get started right away, or you may lose your chance. Sit down and write your lenders a hardship letter, and you have to be formal about it, just explain the situation in detail why the short sell of your home is the only option, and be honest. When you are done, make sure that you have all the relevant papers stating the situation as well, so your lenders will know that a short sale is your best and only option.
Be prepared both physically and emotional to move quickly. Have your stuff packed and either moved into storage, or ready to move into a rental. Walk through your home, and let go off your emotions, and say your goodbyes. Get down to the basic living necessities, and that’s it. You may only have a short period of time in which the quick sales will take place and you may have to move at a moment’s notice.
You can find much more detailed information about the short selling of your home online, including realtors, lending agencies, and sites that will help you with the mathematical calculations needed. You can find out what the whole short sell process entails, how much your credit may be effected, and even support groups that can help you with the stress in these troubled times.