Foreclosure and short selling are both commercial terms that are important for homeowners to understand. These are both options that homeowners have when they can no longer make their mortgage payments. Foreclosure is a process where the lender takes back the property and sells it to recoup its losses. Short selling is when the homeowner sells the property for less than what is owed on the mortgage.
Here, we’ll go through how both work out so you can choose what’s best for you.
How Does Foreclosure Work In Biloxi, Mississippi?
No one wants to go through foreclosure, but sometimes it’s unavoidable. If you’re facing foreclosure in Biloxi, Mississippi, it’s important to understand the process so you can be prepared. The first step is to receive a Notice of Default from your lender. This means you’ve fallen behind on your mortgage payments, and the lender is beginning foreclosure. You’ll then have a certain amount of time to catch up on your payments.
If you can’t do this, the next step is for the lender to file a Notice of Sale with the court. This means the lender will auction off your home to the highest bidder. Often, the winning bid will be less than what you owe on your mortgage, which means you’ll still owe money to the lender even after losing your home. Foreclosure is difficult, but understanding how it works can help you make the best of a difficult situation.
How Does A Short Sale Work?
A short sale occurs when a homeowner in financial distress sells their property for less than the outstanding balance on their mortgage. The proceeds from the sale go to the mortgage lender, and the homeowner is released from their debt. While a short sale can be a good option for those struggling to make their mortgage payments, it is important to be aware of the potential drawbacks.
For one, a short sale will negatively impact your credit score, making it more difficult to obtain new loans in the future. Additionally, you may be required to pay taxes on the forgiven debt, and some lenders may require you to sign a promissory note for the remaining balance. As such, it is important to speak with a qualified financial advisor before pursuing a short sale.
Avoid Losing Out: Sell To A Homebuyer
Both short-selling your home or falling into foreclosure mean you’ll lose money. Your home is an asset, and you lose what it’s worth in both processes. Thankfully, there’s a third option: selling to a homebuyer. At Southern Properties United, we’re Home Buyers in Biloxi, MS, ready to make a fair cash offer on your house.
With our cash offers, you’ll be able to pay off your debts and avoid foreclosure while saving money for yourself from the sale. If you’re searching for ways to “sell my house fast,” Southern Properties United is the way to go.