In the last several years short sale homes have been rare, but as the market shifts the need for short sales will inevitably rise. Many people buy their homes expecting to stay for the foreseeable future, but things can change; job change, health issues, job loss, divorce, etc. If you have to sell and think your home is underwater there is an option called a short sale.
In this scenario the bank is voluntarily taking less than what is owned to it in order to avoid the home going into foreclosure. The foreclosure process for banks takes 4-5 months at minimum, and sometimes over a year costing the bank a lot of time and money. Back during the 2008 recession banks would have been much better off negotiating more short sales rather than just letting homes foreclose.
If your home is underwater but you are paying on time it is very difficult to get a bank to accept less than what is owed. They generally are not going to be very negotiable if you are paying on time. With that being said, if you can help it, you don’t want to stop paying because it will hurt your credit. If you are in a situation where you cannot make your payment a short sale is definitely going to be better for your credit than a foreclosure.
If you think your home is underwater and you need a short sale Realtor that can help please reach out to me. As your short sale specialist we can discuss all your options to get your home sold quick and work to make it as painless as possible.