A Bank Short Sale – The Only Way Out?
A bank short sale is definitely not the only way out of a foreclosure, but it has many advantages that far outweigh other alternatives. A borrower facing this type of situation is already struggling under heavy financial constraints and may not be prepared to deal with the complexities of a short sale. The important thing to understand is that if approved for a bank short sale, the owners could find themselves in the best position possible to buy another home in the future.
It’s hard to admit that we may lose our home due to financial trouble, but if we must let it go, avoiding foreclosures should be our primary goal. A bank short sale may be the best way out of the situation – but it’s not the only way out. We could opt for a foreclosure and lose our home, have our wages garnished, owe thousands in unpaid property taxes, and be chased down for years by collection agencies. Don’t forget the destroyed credit. If this scenario doesn’t appeal to us, then we could do a bank short sale and settle all of these issues up front.
A bank short sale can cause high levels of stress and anxiety. It’s easy to feel overpowered by all of the accountants, tax issues, lawyers, forms, legal jargon, and phone calls. This is not even considering the financial difficulties we’re experiencing in other areas. It is in this situation that we must not forget that all parties involved in our short sale are trying to get as much money as they can. They may make surprise requests in the final weeks/days. Prepare yourself for this possibility – don’t be bullied.
By having expert legal advice from the outset, we can avoid many of these last minute surprises. Don’t be fooled into thinking you can complete this process without expert advice. A bank short sale involves many aspects of law relating to taxes, lending practices, and real estate. Be sure that you have access to professionals in “each” of these areas. There are services offered by teams of attorneys, accountants, and real estate professionals that will help you complete the entire process – and then get their fees paid by the lenders. As with any service, there are good ones and bad ones – so be careful – but there are some excellent services out available.
A bank is losing money with a short sale and are not necessarily enthusiastic about doing them. They avoid a foreclosure – yes, but their attitude is not to be considered enthusiastic. They can be difficult to deal with at times because they’re trying to get back as much money as they can. For this reason they might not always move as fast as we want – although we know they can. Patience is a valued virtue here – so practice it and keep cool. If you’ve ever had to work with the government you know exactly what dealing with these banks will be like.
Although a bank short sale is a tenuous process and all parties may not always see eye to eye, in the end, we’ll be the winners. We may lose our home, but we’ll be considered winners if we can get the debt forgiven, come out without any unpaid property taxes, without a bankruptcy, and be free and clear. This is the beauty of a bank short sale. It’s not all roses – no, but the ultimate objective is to end up in the best position to purchase another home. The successful completion of this process puts us in a great position to succeed in this area. A bank short sale is not the only way out – but it is definitely one of the best ways!