Short sale is a process used when a borrower cannot afford to make their monthly mortgage payments. The borrower approaches their lender and requests to sell the property for less than the outstanding amount in exchange for the bank forgiving the remaining amount. If the borrower can prove they are suffering from an extreme financial situation, the bank may decide that a short sale is in their best interest to avoid having to foreclose. If you are already several payments behind, short sales in Miami may help you avoid a foreclosure. The only way to determine if short sale may work in your situation is to contact Miami foreclosure attorneys. There are a many situations that might warrant a short sale.
- You cannot afford your home and want to get out. Short sale is a last ditch effort to avoid a foreclosure. If you want to keep your house, a short sale is not the path to take. Consider refinancing, loan modification or even bankruptcy if you want to keep the property.
- You are worried that you will go into foreclosure in Miami. If you are already in foreclosure, a short sale will not usually be an option. You should consider short sales Miami before the foreclosure process begins. A foreclosure will stay on your credit for up to ten years, while a short sale does show up on your score it is much less damaging.
- If you are already several months behind on your payments. Banks will not consider your request for a short sale if you are up to date. They want you to repay the entire loan if you can. That is how they make profits. If you are able to make the payments you should. You will have to provide the bank with all your financial documents in order to apply for a short sale.
- If your financial situation has changed dramatically and is not likely to get better any time soon. You will lose your home, keep that in mind. If you have been unemployed for an extended period of time and are unable to find employment, a short sale might be a good option. If you just lost your job yesterday, give yourself some time. Short sales in Miami are the last step to avoid foreclosure.
- You owe more on your house than it is worth. While simply being upside down on your mortgage is not enough to warrant a short sale, if you are struggling to make payments it might be an option. Your lender has to agree to a short sale which means you have to prove you cannot afford to pay.
- You want to protect your credit score as much as possible. A short sale is less damaging to your credit score than a bankruptcy or foreclosure, but will still have an impact. You will be able to start over with minimal credit damage with short sales in Miami.