How to Short Sell Your Home

Once you, as a homeowner, begin to have trouble keeping up with your adjustable-rate mortgage, one of the things you can do is to engage in a short sale. This is one of the best ways to sell your house quickly when you’re running out of options. Aside from helping you avoid foreclosure, engaging in a short sale can also salvage your credit, thus saving you from declaring bankruptcy.

Defining a Short Sale

Short sales are defined as an event when a homeowner, distressed in his financial state, sells his home for less than the amount of his due on the mortgage. Once the house gets sold by a third party, the proceeds of the sale go to the lender, who then either forgives the difference or acquires a deficiency judgment against the borrower.

How to Proceed with a Short Sale

Though beginning a short sale seems arduous, this strategy can be worth it in the end if you prepare well for it. First, you must ensure that the source of your financial trouble, which is hampering you from being able to afford the home, must have happened only recently. Second, you’ll need to begin watching your other expenses, particularly those that you really don’t need. Third – and perhaps one of the most important factors – you will need a buyer who will offer to purchase your property quickly.