Methods to Preventing Foreclosures – Pros and Cons of Short Selling!

Some folks are wondering how short sales can possibly be a good thing when money is lost on the deal; well here are some points to consider when weighing in the pros and cons of it.

Short selling allows you to maintain a certain level of dignity in knowing you sold your home. It was not sold in a public auction, you were not embarrassed by a foreclosure, and to a certain degree you controlled the proceedings. People misunderstand the degree with which foreclosure becomes public knowledge; public sale notices can be hung from the property or posted on the door. Some folks just cannot handle this style or level of embarrassment and will do anything they can to avoid it.

Under leading lenders guidelines, short selling will allow you to obtain the eligibility to own a house a lot faster than if your previous home had been foreclosed. The potentially time for a short sale home owner, is 2 years. As opposed to a foreclosed home which can be anywhere from 5 to 10 years.

You also get the pleasure of meeting the new owners. This may not seem like a benefit to some folks, but it really can be a pleasing experience. Instead of being on the outside looking in, you are right involved in the action and are acting like any homeowner would! To the casual observer things would look absolutely normal and you would have absolutely no reasons to feel embarrassed.

On the downside of short selling, there could be a tax bill in your future. The difference between the sale and loan price, being the amount the lender is forgiving, can in fact be considered income and can result in you having to pay a potentially hefty tax bill that some real estate agents and other folks may fail to mention.

The target on the backs of folks close to foreclosure becomes a bright neon sign and magnet for scam artists. When you are panicked and trying to remedy this potentially embarrassing situation, some businesses and agents will offer a quick way out that will in fact look too good to be true, and usually really is too good to be true. Whenever you think the offer looks too sweet, research the person, research their business, and research everything about them. Protect yourself by being equipped with every ounce of information you can possibly have!!

Also beware of lazy agents. A poor choice in real estate agents can sink a short sale before it begins. You need to select someone with extensive short sales experience and that has a strategy in place that does not involve milking you for every penny they can!

Immobilienmakler Heidelberg

Makler Heidelberg

Source by Edward J. Carlson

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