Many people decide to take out a loan when they want to buy a house. It is a very common option, as not a lot of people have the patience to save up money for years until they have enough for this large purchase. Unfortunately, if they are not able to pay the loan back, they are at risk of facing foreclosure. The only way to avoid this is to choose to sell their house short. MD Short Sales is the leading short sale company in MD. Don’t hesitate to give them a call if you want to avoid foreclosure.
Taking out a loan is an ideal option for persons who lack patience, as they can buy a house immediately, and pay it back later. If you choose this option, you will need to pay monthly loan rates during an extended period, in most cases 15 or 30 years. Unfortunately, you never know what will happen in the future. Some homeowners face various problems, such as unemployment, economic crisis, and more. If you are one of them, and you have troubles paying back the loan, you may face a foreclosure. You should be aware that the foreclosure process is stressful, long, and can damage your savings and credit score a lot. Luckily, there is another option – you can choose to sell your house short.
You Will Have More Control
One of the advantages of choosing to sell your house short is that you will have more control, compared to foreclosure. Although it includes meeting, negotiations, and filling out paperwork, short sale plays out similar to a traditional sale. On the other hand, in case of foreclosure, you would receive demand letters and confusing documents regularly.
Additionally, you would have to deal with the lender’s legal team. If you choose the first option, you will have an active role in the entire process, and deal with a real estate agent, your bank, and the homebuyer. All in all, it is a much better idea to manage short sale than to be at the mercy of a lender’s attorneys during the process of foreclosure.
You Can Protect Your Credit Score
You need to understand that both short sale and foreclosure will have an adverse impact on your credit rating. However, this effect is much more severe in the second case. Your credit score is important as it will have a vital role if you decide to take out a loan again in the future. You will be able to borrow more money, and at more reasonable rates if you didn’t go through foreclosure in the past.
You Will Save More Money
It is important to realize that foreclosures can be expensive. Besides an average cost of around $7,500, you will have to cover additional expenses, especially if the entire process becomes lengthy. It can be difficult to pay these costs, especially when you are already having problems with paying back the loan. Many people can’t afford foreclosure. If you want to avoid bankruptcy, it would be the best idea to choose short sale. All you need to do is to get in touch with the right short sale company, and your problems will soon be over.