What are the potential pitfalls of a Short Sale?
Sellers considering a short sale must understand a few important things. First, not all lenders will offer to relieve the seller of the responsibility of paying off the balance of the loan. So, sellers should get a solid commitment from lenders that states this is part of the deal. Also, though the seller is avoiding a foreclosure, even a short sale may affect their credit score to some extent. So, sellers should discuss this issue with their lender to figure out how the process will be reported to the credit agencies. Most importantly, not all sellers even qualify for entering into a short sale. For example, few lenders will even think about entering into a short sale agreement with sellers who have not yet missed multiple payments. So, if you’re a seller thinking about a short sale, you’ll want to talk to your lender about the options available.
