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Have you fallen behind on your Kitchener Ontario mortgage payments? Worried that your home will soon be foreclosed on by the bank? If the bank is pressuring you to put your home up for a short sale, don't cave to their demands before talking to a Kitchener real estate buyer at KWCPB. Walk away from the sale of your home knowing you're made the right decision – contact KWCPB today. What is a Short Sale? The term "short sale" became a common phrase back in 2008 during what is now referred to as the housing market collapse. When someone puts their home on the market for a short sale, it means that the asking price of the home is far less than the amount of money that the owner currently owes on the property's mortgage. As the seller, you not only risk losing a lot of money on the sale, but you could come out of the deal STILL owing money to the bank on your mortgage. Talk about a terrible situation! It Hurts Your Credit One of the biggest disadvantages of selling your property in a short sale is the effect it will have on your personal credit. While a short sale hurts your credit report less than a foreclosure, it will still hamper your ability to borrow money from a bank in the future. In order to avoid this mark on your rating, you need to make enough money off the sale of your home to completely cover your outstanding mortgage. Our Kitchener real estate buyers will do everything they can to help you reach this goal and come out of your property sale with a clean credit score. Don't Take Risks by Playing the Waiting Game Deciding whether to sell your home as a short sale, or wait for it to slip into foreclosure can be difficult. If you decide to sell your house as a short sell, make sure you're aware of what will happen to the remaining balance on your mortgage. Our Kitchener real estate buyers have found that banks differ on their rules. Often, this amount is written off at the expense of the seller's credit. But that doesn't mean that the amount is destroyed. Your bank may require you to sign an unsecured promissory note for the remainder – if you're unable to settle this outstanding amount, this will show as a default on your record and will cause you tons of problems for future credit. And let's not forget about taxes! If you owned the home as an investment property before the short sale, you may be responsible for the taxes on the full value of the home. (Our Kitchener real estate buyers highly recommend you consult with a tax attorney in order to better understand this requirement). Sell Your Home Fast When it comes to avoiding foreclosure and keeping your home from a short sale, time is of the essence. If you need to move your property fast and for a fair price, look no further than the Kitchener real estate buyers at KWCPB. Our professional agents will help you raise the capital you need to pay off your mortgage and start fresh. View More Articles from |
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Don't Settle for a Short Sale