We buy houses in Hopkinsville KY. We are professional homebuyers in Kentucky and you may asking yourself, “What is a short sale? And how does it benefit me in Kentucky?” “Should I do a short sale vs. foreclose?”… Don’t worry; you’ve come to the right place for answers!
Avoid Foreclosure In Hopkinsville KY With A Short Sale
The Short Sale in Hopkinsville
A short sale is a way to avoid foreclosure or decrease the effects on your credit from a foreclosure. A short sale is exactly what it sounds like. You are essentially selling your house at a value less than the mortgage balance. Short sales became commonplace back in 2009 when the real estate bubble burst and there were homes being foreclosed on nationwide.
Now, the real estate market is hot! The lender is less willing to negotiate a short sale. The reason the lender creates a mortgage is because the property acts as collateral in the event that you are unable to pay the lender back. The lender has the right to exercise their right to start the foreclosure process (civil or judicial – depending on your state) if you do not service your debt obligations.
In the event that you cannot pay your mortgage and your lender starts the foreclosure process, you can negotiate a short sale to avoid foreclosure. This makes sense if you owe more than the home is worth.
Unfortunately, not all real estate appreciates (goes up in value over time). Without getting too deep into tax terminology, just realize that some property goes down in value. All physical assets go down in value (depreciate) over time, but property or land can also lose value due to the neighbors (Imagine a cement factory moving in across the street from your house. Unfortunately, we have literally seen this in Hopkinsville KY).
Imagine you bought a house and you lived there for 20 years. Most people would assume the property went up in value. However, this is not always the case. The land value may have risen, but the house is most likely dated, and there are repairs needed. Therefore, the house may be worthless, but the land is worth more. Conversely, the land and the house may be worthless due to unfavorable neighbors moving in or a highway that was built close by. These factors can significantly lower a property value.
If your property value decreases to a level that is below your mortgage, it makes less sense to keep paying the mortgage. You’re paying for something that you overpaid for. This is where a short sale can benefit you as the borrower. It’s better to work on a short sale than to stop paying, which will allow the bank to move your property into pre-foreclosure.
Rather than stop paying your mortgage, a short sale can benefit you because you avoid foreclosure. In a short sale, the lender accepts less than what is owed on the mortgage, and you are left without a debt burden that you are unable to service. The home will go to the new owner that you sold to, and the bank will recoup most of the money they lent you for the property. You’ll need to find a new place to live, but you effectively cancel out your debt and are able to move on without a black mark on your credit.
Why Try To Avoid Foreclosure in Kentucky?
Foreclosure can cause all sorts of trouble down the road. The most immediate problem is that your credit takes a major hit negatively. This mark remains on your credit for 7 years in most cases and hinders your ability to apply for loans in the future.
Not only will a foreclosure make it difficult to purchase a home in the future, but it can also make it challenging to get approved to rent. Often landlords or apartment complexes will run a background check and credit check on applicants before they are approved. Having a foreclosure on your record will disqualify you from many places, making it harder to find a place to live.
Finding A Company To Help With A Short Sale in KY
Above, we covered the benefits of a short sale. It allows the borrower to move on debt-free without unaffordable payments lingering after the sale of the property. This all sounds great, but how do you actually do a short sale?
Many times a local lawyer that specializes in real estate can help you out. Our company helps people that want to sell property fast in Kentucky by guiding them in the right direction. It’s a delicate tactic, as you need bank approval to go through with a short sale. However, many banks would rather take some money rather than nothing. Banks want their loans to perform and they are not in the business of owning houses. Banks do not want to own your house. They want to lend you money at a premium, which you pay back in the form of interest. The banks do not like to foreclosure on properties. If you keep this in mind when you negotiate a short sale, you could manage to get approval.
Finding a local real estate attorney should not be hard. You can search online to find one. You can also find a local real estate investor. Investors work with attorneys all the time to close deals and purchase properties. Additionally, the house buying companies are the ones that typically purchase properties all cash which is what the bank and you both want. You need a buyer that is willing to purchase your property. Most likely, if you’re entertaining the thought of a short sale, your property is not in perfect shape. This is great because investors make money by purchasing properties and then fixing them up and renting or selling them. Finding a local house buyer is a great option when considering a short sale. Ultimately, you need to sell your property to someone and they are the very people always on the hunt for more property.
You can find a local investor by doing a Google search, “Sell my home fast in Kentucky” (Just insert your city or state) and you’ll find tons of options. You can call these companies and see which ones are the most qualified and knowledgeable when it comes to a short sale. Once you’ve qualified your buyer, you can move through the process much easier than if you tried to do it all yourself.
Getting Approval For A Short Sale in Hopkinsville
If you find you are ready to do a short sale, then you’ll need to provide your bank proof that you are truly unable to meet your debt obligations. You’ll have to show your bank that you cannot make your mortgage payments. This is difficult, but a local investor can point you to a quality real estate attorney that can help you get approved.
If you’re honest, transparent and you’re easy to work with, you can very well sell your property fast and avoid foreclosure. In the future, you should be able to rebuild/save up for a new property and get approved for a new loan without a black mark on your credit. This is the real goal of a short sale. You can save your credit, your lending record and allow yourself to purchase property in the future.
Sell My House in Hopkinsville KY
If you’re ready to sell your house in KY fast, you’ve come to the right place! We’re experts and we truly enjoy helping others. We want the best outcome for you and your loved ones. If you’re ready to sell your property, great! If you’re looking for advice, we’re happy to provide that as well. We are professional home buyers in Kentucky and we offer cash for houses in Hopkinsville, we love helping sellers sell their house faster, easier, and for no fees.