What is a short sale and how does it benefit you in Boise ID?

What is a short sale and how does it benefit you here in Boise?

If you’re thinking that question about yourself… great question!

In this article we’ll dive into that question so you as a Boise ID home owner can tell what your options are during foreclosure or just if your home mortgage is underwater.

If you have more questions about foreclosure, we’ve created an informative video series that can help you understand how the process works in Idaho.

What is a Short Sale and How Does it Benefit You?

A short sale can be a smart way to avoid foreclosure(here’s a great definition of what a foreclosure is if you’re unfamiliar) on a mortgage. While they can be harder to secure in today’s market, a short sale often offers a more straightforward path to resolving the remaining debt on a loan.

Short sales were especially common a few years back when foreclosures flooded the Boise market… but as foreclosure rates have eased and home values have recovered… lenders are somewhat less inclined to offer short sales than they once were — though they’re still approving a significant number of them!

Here are a few reasons you may want to consider short sale on your Boise home

You Avoid Foreclosure And The Harmful Effects Of It

The best benefit of short sale is that you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt that you cannot afford.

Foreclosure can lead to all kinds of financial problems, starting with the inability to obtain a new loan for a home because a foreclosure stays on your credit record usually for up to 7 years.

Even renting will become more difficult as your credit score would be affected, and you often have to disclose a foreclosure on a rental application. Foreclosures can also last a long time (up to 7 years as mentioned above), making you wait years to even qualify for a new mortgage.

Credit Worries

With a foreclosure, you face all kinds of ramifications with your credit. Buying a car and renting a house may be impossible through the normal bank loan routes.

If you work with money at your job you could even face termination if your employer puts a lot of stock in that kind of thing (most employers won’t but it has been done before).

A short sale relieves the debt that is left over from what is owed on the mortgage, letting both the bank and the seller move on. A short sale is also easier on your credit score, which can allow a homeowner the ability to recover in the long run. Your credit report will only show a pre-foreclosure status, which reduces your credit rating minimally compared to a foreclosure.

Buying a New Home

A foreclosure can follow you for a long time, making it difficult or impossible to qualify for a new mortgage for up to 7 years.

Short sales offer more flexibility for Idaho homeowners, allowing new mortgage applications as soon as 2 years after the filing — depending on your lender. It also signals more responsibility to future mortgage lenders, improving your chances of approval and helping you get back into a home sooner.

Keep in mind, every bank and lender operates a little differently. If you’re running into roadblocks a year or two after a short sale, don’t get discouraged — shop around and find a lender who’s willing to work with your situation.

Usually No Fees Involved

One potential benefit of the short sale is there are usually no fees associated with the process from the bank.  The banks just want to get the note off of their books… and if it can be proven that your house is “underwater” (you owe more than your house is worth)… and you’re at the risk of walking away from the house… the bank may rather work out a short sale instead of going through a costly foreclosure.

With a foreclosure, your mortgage lender may tack on extra fees that only make the damage worse.

Some real estate consultants may charge a fee for helping facilitate the foreclosure with your bank… so check with them before you enlist a real estate agent or firm in helping you with this.

Our company, Idaho House Buyer may be able to guide you in the right direction on how to give yourself the best shot at a bank approving a short sale with your Boise area house… so connect with us by calling 208-581-5424 or shoot an email to us through our contact page here.

Getting a Short Sale – What You May Need To Provide

You will have to provide the bank with proof of being unable to pay your mortgage payments. This can be difficult and is best resolved by finding a good real estate attorney in your area that has experience dealing in this type of law.

If you don’t know who to contact or where to turn to see if a short sale may be a good option for you… get a hold of us.

We won’t charge a thing to discuss your situation with you and let you know your options.

And we can even give you guidance and pointers at absolutely no cost or obligation.

Sometimes we’re actually able to do the work for you or even buy the house from you to get you out from under that mortgage… so that may be a viable option for you.

We buy Boise houses and we work with home sellers like yourself who are having troubles getting out of your house the traditional way… or who can’t (or don’t want to) go the usual route of listing with an agent.

Get a hold of us anytime to discuss your situation. We’re here for you!

Or, if you want to see what we can offer on your house… click the link below and fill out the form on the next page. We’ll make a no-obligation cash offer to you within 24 hours. At least that way you know whether that is an option for you or not.

 

Are you looking to sell a house outside of Boise? We’ve got you covered. We buy houses Nampa, Caldwell, Twin Falls, Payette, Magic Valley, Emmett, Mountain Home and more.