When things get tough, as they are now, in the long beach real estate market some home owners find themselves getting behind in payments. Often through no fault of their own home owners have lost jobs, health reasons, helping family, and rising rates make it difficult to pay the mortgage on their piece of long beach real estate. So what is a short sale and why should you ask your bank for one if you get behind? Well let's get into this.
- The bank doesn't want to foreclose - Truly banks like to lend money. They have no desire to actually be property owners.
- It is bad for business - It costs the bank a tremendous amount of time and effort to foreclose on a piece of property and long beach real estate is no different. The average cost of a foreclosure is over $42,356!
- The number one reason for foreclosure is the bank can't speak with the home owner - That's right lack of communication is the reason behind the majority of foreclosures. So speaking with the bank and asking them to work with you is highly in your benefit.
- It is better for your credit - Getting a short sale where the bank works with you to sell a property is better for your credit than a foreclosure. The bank has more options on how to report it to the credit agencies.
Remember a short sale is when you are selling a property for less than it is owed. In future posts we will talk about how this can affect you. For now if you are behind on payments, can't refinance, and just need out consider a short sale instead of letting the property foreclosure.
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