A short sale allows you to sell your home even if you owe the bank more than the house is worth and it won’t cost you a penny. If you owe more on your mortgage than your home is worth you are considered to be underwater. You have no equity. There is no financial incentive for you to keep paying on the house. In this situation homeowners should seriously consider a short sale. You are basically paying a very high rent! A short sale will put an end to the struggle of keeping up with no equity house payments. Think of the amount you are paying in property taxes, insurance, homeowners association fees and interest. You are paying for all that and still owe more than your house is worth!
A short sale is the smart way out of a very messy, long term, bad financial situation. In a short sale your lender will allow you to sell your property at or below the current market value. Why? Because they recognize you are likely to lose the house to foreclosure, a very expensive, money losing process for your lender. In return for your cooperation with the short sale your lender will release you from your mortgage and waive your deficiency balance. You won’t owe them any more money! They will waive the late payment penalties, the deficiency, everything just to get themselves out of this mortgage mess. A short sale is one of the most effective foreclosure prevention options available.
This is a great time to take advantage of your lenders desperation and your own! Don’t sink good money after bad. Your lender will keep taking your money until it is all gone and then they will foreclose on the house anyway. If you can’t afford the house be smart. Take advantage of your lender get your peace of mind back.