What is a short sale and how does it benefit you here in New Orleans?
This statement does not require a rewrite as it is already grammatically correct and clear.
“In this article, we will explore the different options available for homeowners in New Orleans, Louisiana who are facing foreclosure or an underwater mortgage.”
What is a Short Sale and How Does it Benefit You?
Although obtaining a short sale can be challenging in today’s market, it can be a wise strategy to avoid foreclosure (if you’re not sure what foreclosure means, here’s a useful definition). Short sales often offer a straightforward solution for settling any outstanding debt from a loan.
In the past, short sales were a common practice in the New Orleans market due to the high number of foreclosures. However, with the decline in foreclosures and the increase in home values, lenders have become more cautious about offering short sales as an option. Nonetheless, short sales continue to be a widely used solution.
Here are a few reasons you may want to consider short sale on your New Orleans home
You Avoid Foreclosure And The Harmful Effects Of It
The primary advantage of a short sale is that it helps you avoid foreclosure on your home. By agreeing to a short sale, your mortgage lender accepts less than the outstanding amount on your mortgage, freeing you from the debt that you cannot afford.
Foreclosure can result in various financial challenges, including obstacles in obtaining a new home loan, as it usually stays on your credit report for a duration of up to seven years.
Foreclosure can make renting more challenging as it negatively impacts your credit score, and rental applications often require disclosure of any past foreclosures. Furthermore, foreclosures can take a considerable amount of time to resolve (up to seven years, as noted previously), which may delay your eligibility for a new mortgage.
Credit Worries
A foreclosure can have various credit-related consequences. Obtaining loans for buying a car or renting a house through traditional bank routes may become unfeasible.
In some cases, if your job involves handling money, you may face termination if your employer places significant importance on your credit record (although most employers do not consider it a major factor).
A short sale relieves the debt that is left over from what is owed on the mortgage,
A short sale enables both the bank and the seller to move forward, and it has a less severe impact on your credit score, which can facilitate long-term recovery. Unlike a foreclosure, your credit report will display a pre-foreclosure status, resulting in a minimal reduction in your credit rating.
Buying a New House
A foreclosure can last for a long time, making it impossible to purchase a mortgage again for up to 7 years.
Short sales provide the seller with some flexibility, as they may be eligible to apply for a new home loan as soon as two years after the filing, depending on the bank’s policies. Additionally, a short sale makes it more likely for a mortgage lender to approve your loan compared to a full foreclosure, thus enabling you to return to homeownership sooner.
It’s important to note that the flexibility and options available to you after a short sale may vary depending on the specific bank or lender you are working with. If you encounter difficulties with your bank or lender one or two years after a short sale, consider shopping around and finding another institution to work with.
Usually No Fees Involved
A potential advantage of a short sale is that there are typically no fees associated with the process from the bank’s perspective. Banks often seek to remove the loan from their books, and if it can be demonstrated that the property is “underwater” (i.e., the outstanding loan amount exceeds the property’s value) and the homeowner is at risk of abandoning the property, the bank may prefer to arrange a short sale rather than undergoing a costly foreclosure process.
With a foreclosure, your mortgage lender may tack on extra fees that only make the damage worse.
It is important to note that some real estate consultants may charge a fee for their assistance with the foreclosure process. Thus, it is recommended to verify whether there are any associated fees before hiring a real estate agent or firm to aid in the process.
Our company, Omni Home Buyers 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 New Orleans area house… so connect with us by calling (504) 399-3155 or shoot an email to us through our contact page here.
Getting a Short Sale – What You May Need To Provide
To initiate the short sale process, you will need to furnish evidence that you are unable to make your mortgage payments. This can be a challenging task, and it’s recommended that you seek the services of a competent real estate attorney in your region who has experience handling this type of legal matter.
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 do not charge any fee to have a conversation with you about your situation and inform you of your available options.”
And we can even give you guidance and pointers at absolutely no cost or obligation.
In some cases, we may be able to assist you by taking care of the necessary tasks on your behalf, or even purchasing the property from you to relieve you of the burden of the mortgage. This may be a suitable solution for your circumstances.
Our company purchases homes in New Orleans, and we collaborate with homeowners such as yourself who are experiencing difficulties exiting their property through traditional methods, or who are unable or uninterested in listing their home with a real estate agent.
Get a hold of us anytime to discuss your situation. We’re here for you!
If you’re interested in discovering what we can offer for your property, simply click on the link below and complete the form on the following page. We’ll promptly provide you with a cash offer within 24 hours without any obligation. This will give you the information you need to determine if this is a viable option for you.