A short sale happens when a lender agrees to accept less than the balance remaining on a home. It is a way for sellers to avoid foreclosure and sell their Palo Alto homes.
It seems like a good idea for people who owe more on their home than it’s worth, but that doesn’t mean it is right for everyone. Should you consider a short sale on your Palo Alto home?
Pros to doing a short sale:
- You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.
- You can still sell your property in a declining real estate market, even if you owe more than the home is worth.
- Buyers sometimes get good deals on the property or may be able to buy a home at market value in a popular area they couldn’t previously afford.
- While a short sale isn’t ideal, it is typically better than a foreclosure which stays on your credit report for 10 years.
- If your home goes into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.
Cons to doing a short sale:
- The lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt.
- The bank’s loss is considered taxable income for you, and you may have to pay taxes on the amount.
- Short sales do stay on your credit report and may make it difficult for you to a get loan in the future.
- Short sales take longer to close than traditional home sales.
I can help you decide if a short sale on your Palo Alto home is right for you. Call me today at 650-454-8568 or email me at email@example.com for more information about your selling options.