How to Sell Your Home Even if You Owe Too Much

As a successful realtor in Westchester County, NY I am increasingly finding myself heading to a listing appointment with a distressed homeowner, skating along the razor’s edge of foreclosure. This person (or family) is ready for a change and desperate to sell their home, but they owe more than the home is worth.

A second mortgage and over extended lines of credit, alongside a brief period of time spent in a home bought at the peak of the market all combine to create a situation that is increasingly common. This situation leaves the current market value of their home at only a fraction of the payoff. I’ve eased the mind of sellers from Armonk to Yonkers, helping them remove the albatross of a distressed home from their lives. How do I do it? By using one of the best options available for homeowners facing foreclosure – the short sale.

Broken down in its simplest terms, a short sale is when a seller facing the possibility of foreclosure is able to strike a deal with their lender for less than they still owe on the property. Sounds great, right? Well yes… and no. If a short sale is right for you, it can be a tremendous boon to your burden, but it is essential to weigh the potential costs against the benefits.

A short sale may help you outrun foreclosure on a home where you owe more than it’s worth, but it may also damage your credit (though not as much as foreclosure). In most instances, the lender will agree to a short sale when the seller is several payments behind and has already been served with a default notice.

How do you know if a short sale is right for you? Though I’m in Westchester County, the answer is identical all across the US map. The best way to find out if you’re distressed property is a proper candidate for a short sale, ask yourself the following questions. Could a sale generate enough to cover the seller’s balance? Does the Seller have the means to solve their problem without the sale? Do they have money sitting idle in an equity account or separate property that they could use to cover the mortgage?

The benefits of a short sale are obvious; in addition to dodging foreclosure, the peace of mind that follows the sale of a distressed property cannot be underestimated. Short sale houses are generally quick as they are listed at a competitive price. Meaning once you agree, a good night’s sleep is right around the corner.

I’ve been working Westchester County, NY for a long time, and know the rules inside and out. Give me a call. I can help you lose both the distress, and the distressed property as well.

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