Chances are, you bought your home thinking about your future. Whether this was the first home you ever bought or the last home you planned on buying, you had plans for it. It’s also likely that those plans did not include losing your home to foreclosure.
Unfortunately, when the economy took a turn for the worse, millions of Pensacola homeowners found themselves facing a foreclosure that they’d never planned on. For homeowners in this situation, it’s important that they understand that there are options that can help them avoid foreclosure.
The Federal government, state and local agencies, and even major banks are more determined than ever before to stem the tide of foreclosures.
You have options, and a Pensacola foreclosure is not one of them!
Among the many alternatives to a Pensacola foreclosure, are loan modifications, deeds-in-lieu, forbearance and short sales which are becoming popular solutions. Many banks are even offering cash incentives that can amount to tens of thousands of dollars to encourage homeowners to pursue a short sale rather than let their home slip into foreclosure.
Short sales are becoming an increasingly more popular solution. Banks love this option because they end up getting more money than if they foreclose, and they don’t have to worry about selling distressed properties at auction.
Short sales generally have less impact on a homeowner’s credit score, and gives homeowners a chance at a fresh start, allowing them to walk away with dignity.
Why Would A Bank Accept A Short Sale?
It can sometimes seem to go against everything we are taught about borrowing money, but in today’s market, banks will gladly accept a short sale as an alternative to foreclosure. Here are three reasons why:
1. In a short sale, the bank never owns the home – It is often overlooked, but this is one of the major reasons why banks prefer short sales. Having to take back the home and then sell it at auction is a major undertaking that can be expensive. In a short sale, there is already someone who wants to buy the home, so that hassle is taken care of.
2. In a short sale, the home is generally in better shape – It is a sad fact, but when people are about to lose their home to foreclosure, they will sometimes try to distance themselves emotionally from the home in order to cope. This can lead to the home not being taken care of, which makes it that much harder to sell. In a short sale, the seller is always being proactive and is generally more responsible.
3. In a short sale, the bank gets more money – Ultimately, this is the main reason. Even though the bank is not getting the full amount of the loan, the amount of the average short sale is almost always significantly higher than a foreclosure sale..
All of these factors combine to make a Short Sale the best solution for the bank. Avoid a Pensacola foreclosure, contact Dr. Cynthia Tant today, 850-393-5134 as she is a Certified Distressed Property Expert and will walk you through the short sale process.