In this article, we’ll look at that question What is a short sale and how does it benefit you here in Hamilton, Ontario? to help you as Hamilton on the homeowner, what your options are when it comes to foreclosure or if your home mortgage is underwater.
If you’re wondering about this question to yourself… Great question!
What is a short sale and how does it benefit you?
A short sale can be a smart way to reduce foreclosure on a mortgage (here’s a great definition of what a foreclosure is) on a mortgage, although they can be difficult to obtain in today’s market, they are often a Proven simple way to solve any debt left over from debt.
Short sales were really common on the market a few years ago when a flood of foreclosures hit the Hamilton market… an option as they used to be (but they’re still doing a lot of them!).
Here are some reasons why you might be considering a short sale on your Hamilton home
You Avoid Foreclosure and Its Harmful Effects
One of the best benefits of a short sale is that you avoid foreclosure on your home. Your mortgage lender accepts less than what you owe on your mortgage, leaving you without a loan you can’t afford.
Foreclosure can lead to all kinds of financial problems, from the inability to obtain a new loan for a home because a foreclosure typically stays on your credit record for 7 years.
Even renting will become more difficult because your credit score will be affected, and you often have to disclose the foreclosure on the rental application. Foreclosures can also last longer (up to 7 years as mentioned above), leaving you waiting for years to qualify for a new mortgage.
With a foreclosure, you face all kinds of impacts to your credit. It may be impossible to buy a car and rent a home through the usual bank loan routes.
If you work with money at your job you may even face dismissal if your employer puts too much stock in that sort of thing (most employers won’t but it has been done before).
A short sale gets rid of the debt that is owed on the mortgage, allowing both the bank and the seller to proceed. A short sale is also easier on your credit score, which can give a homeowner the ability to recover in the long run. Your credit report will only show a pre-foreclosure status, which lowers your credit rating to a minimum compared to foreclosure.
Buying a New Home
A foreclosure can last for a long time, making it impossible to buy a mortgage again for up to 7 years.
The short sale provides a bit more flexibility for the seller, allowing new home applications only after 2 years of filing on a bank basis. This makes a mortgage lender more likely to approve your loan, getting you back into the home faster than if you had a full foreclosure.
Again, it all depends on the actual bank/lender you’re dealing with… so if they’re going to give you a hard year or two after a short sale… shop around and work Find another bank to do.
There Is Usually No Fee Involved
One potential benefit of a short sale is that there are usually no fees associated with the process on the part of the bank. Banks just want to take notes off your books… and if it can be proven that your home is “underwater” (your home’s worth exceeding what you owe)… and you’re at risk of moving away from home. If… the bank can do a short sale instead of going through an expensive foreclosure.
With a foreclosure, your mortgage lender may work out additional fees that only make the loss worse.
Some real estate consultants may charge a fee to help facilitate foreclosure with your bank… so before you do check with them to find a real estate agent or firm to help with this.
Our company, Ontario Cash House Buyer may be able to guide you in the right direction on how to give yourself the best shot at the bank approving a short sale with your Hamilton area home… so- Join us by calling (647) 955-3595. Or shoot us an email via our contact page here.
Getting a Short Sale – What You Might Need to Provide
You must provide proof of your being unable to pay your mortgage payments to the bank. This can be difficult and is best resolved by finding a good real estate attorney in your area who has experience dealing with this type of law.
If you don’t know who to contact or where to turn, hold on to us to see if a short sale might be a good option for you.
We will not charge a fee to discuss your situation with you and to explain your options, and we can also provide guidance and pointers to you at no cost or liability.
Sometimes we’re able to actually do the work for you or even buy you a house to get you out of that mortgage… so that’s a viable option for you.