For those who are struggling to pay their mortgage on time each month, life can get difficult. You may be feeling down and you could have heard about the options available to you. One of these options is a short sale. It can help you to sell your property quickly but the amount that you will get for the property is significantly less than you will need to pay back on your mortgage. You should be very careful if you are thinking of a short sale to solve your financial problems. This can be a good choice for some mortgage holders but you should research to make sure that it is the best option for you.
The short sale will in no way absolve you of your debt. You have to actually pay back the full amount of the mortgage as agreed in your contract and the mortgage lender is the one who is in control. They reserve the right at any point to take the property from it to recover the debt for themselves.
Another problem that you may run into with short sales is that it wont help you to claw back your credit score. When people make a short sale, often, they know that they have bad credit. You get bad credit by not paying your creditors on time and the more you do this, the worse your score is. When you use a short sale to shift your home quickly, you won’t notice that your credit score improves at all. You may even find that your score gets a little worse. It is not as bad as the consequences of a foreclosure, but you need to be aware that it can still be damaging.
You should only resort to a short sale if it is your very last option. It is not always the only option and if there are any better things that you can do, then you should try these first.