Once you’re late on your mortgage, a lot of people want to talk with you. Some people want you to declare bankruptcy. Others want to “short-sell” your house, telling you that you can walk away clean and start over somewhere else.
Short-selling (selling your house for less than you owe) isn’t always a bad idea. Should you short-sell or should you modify your loan?
If you’re having trouble paying your mortgage, here are a few good ways to know if you should short-sell your property or work with Sunwest to modify your loan:
- Do I love my home? For some people, it’s just a house — some walls and some paint. For other people, this is your home, where you have all your special memories. If you want to leave the house and move on, then you might want to short-sell. But if you want to fight to keep your home, you should work with Sunwest.
- Do I like my neighborhood? You might like your home, but hate your neighborhood. Life is too short to live some place you hate. If you’re happy in your neighborhood, work with Sunwest to modify your loan, and stay at home. If your neighbors make you unhappy, short-sell and start fresh somewhere else.
- Will I be happy living in an apartment? Once you short-sell, you’re going to be a renter. You might find a nice house to rent, but you may very well end up in an apartment. Are you ready to go back to apartment living? Are you ready to live by a landlord’s rules instead of your own? If you want to keep your independence, work with Sunwest to modify your loan.
- Do I want to rebuild my credit? Short-selling is not as bad as a foreclosure, but it’s close. That mark is going to follow you for years on your credit report, and it’s going to make future home loans and other types of credit hard to obtain for years down the road. Insurance companies, car dealerships, and even future employers will see your short-sell if they obtain a credit report and use that to make a decision about doing business with you.
Short-selling is not guaranteed. It takes months to find a buyer and conclude the negotiations with a lender. There are some real advantages to short-selling, but there are real consequences too. Think carefully about what you want before making your decision. If you decide to keep your home, call us at 888-536-0334 for a free short initial consultation.
