Should I "Short Sale" my house?

Let's quickly go over what short sales are before getting into if it's a good idea. A Short Sale is needed when a borrower owes more money for a home than it is currently worth and the borrower needs to sell. The borrower's lender will reduce the payoff amount to allow the borrower to sell and transfer the property at current market value.

Besides Short Sales banks offer another type of assistance called Loan Modifications or Loan Mods. With these Loan Mods the banks will typically reduce the interest rate down to just a couple of percent to make the monthly payments affordable to the borrower. The principal remains the same.

Another option is foreclosure but that is really not an option is it?

So now let's quickly go over if a Short Sale makes sense...

It depends. Lets start with how attached you are to your home? And how affordable is it for you and is it affecting your lifestyle. Is being attached to your home worth paying twice it's current worth plus interest. Not to me. It's material. New beautiful memories can be made in any home.

Did you know that if you short sale your home you can buy another within two years? Well it's very TRUE!

 

So knowing that why would you want to stay with your current mortgage when you can sell and buy again in less than two years at current market prices? That means you could buy a home comparable to the one in you're in now for half the price! A no brainer!

We know prices aren't going to go back up anytime soon. That means that if you need to sell you'll have to short sale anyway. So why wait and overpay until then? Attachment and memories maybe? Beautiful memories can be made anywhere you are. Kind of like making that huge mortgage a thing of the past... 

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