The Pros and Cons of Austin Short Sales

Austin residents who can no longer afford to remain in their homes need options, and they need them sooner rather than later. If you’re facing foreclosure, or other circumstances like divorce, job loss or relocation, you’re more than likely looking to sell your Austin home fast. However, selling a home is not easy and the red tape associated with mortgage financing can cause traditional real estate transactions to take months. Some homeowners who can no longer afford their mortgage payments opt for Austin short sales.

What is a Short Sale?

Also referred to as a pre-foreclosure sale, Austin short sales are a type of real estate transaction in which the proceeds of selling the property fall short of the remaining balance of the mortgage. If your mortgage company does agree to a short sale, it can be a good option to avoid having the stains of a full foreclosure on your credit history. While going forward with a short sale can still reflect negatively on your credit score, this damage can be minimized if the lender agrees to report the debt to the credit bureaus as “paid in full.”

What Happens During an Austin Short Sale?

Austin short sales actually work like your typical real estate sales transaction. You work with a real estate agent to market and sell your current home to another party. However, you will also be working with the mortgage lender. With both parties in tow, you’ll be able to:

  • Set the sales price for your home, based on its current value.
  • Collect financial information and negotiate.
  • Review any offers acceptable to you and your associated parties.
  • Agree to the terms of a potential sale, if it’s the right one.
  • Work with the buyer’s parties to complete the transaction.

In order to go forward with Austin short sales, homeowners must first qualify for this type of sale. You must be able to prove that a true financial hardship such as job loss, decreased wages or a medical condition has impeded your ability to make your mortgage payments. Circumstances like divorce and estate situations can also qualify you.

There are pros and cons to Austin short sales, and it may or may not be an ideal option for you. It all depends on your individual situation. It is in the seller’s best interest to be as educated as possible about how a short sale will affect their specific financial situation and credit score. If you have questions about Austin short sales or would like to learn more about alternative options for selling your home fast, you can always contact us at Tally Two Investment Group. We will review your situation carefully and provide honest advice on the best options for you, even if they will not profit us.

What are the Pros and Cons of a Short Sale?

If you choose to take the short sale route, the following pros might make the process worth it:

  • Enables you to reduce or completely eliminate your mortgage debt.
  • Allows you to avoid the impact of a foreclosure.
  • Lets you repair your credit faster than a foreclosure.

Though, there are some cons as well:

  • You might not get back enough to cover all of your mortgage debt.
  • You might not be able to repair your credit as soon as possible.
  • Short sales can take longer than a traditional sale due to their complexity.

If you are considering a short sale, please give us a call first to review all of your potential options for selling your Austin home. At Tally Two Investment Group, we buy houses for cash and specialize in creating solutions for homeowners based on their unique situation.