With short sale option, property owners can avoid devastating effects of foreclosure on their credit report.
Chicago, Illinois – Feb 3, 2021 – With new highs in mortgage delinquencies sweeping the nation, Chicagoland Realtor® Anthony Wesbrook is on a mission to help educate the public about the dire consequences of foreclosure and why a short sale might be the best solution for many to avoid foreclosure altogether.
While 2020 saw some dips in the mortgage delinquency rates due to forbearance and other relief efforts, things took a turn for the worse as of Q3 2020. In August, the 90-day+ mortgage delinquency rate reached highs not seen since 2010.
Without a long-term resolution plan in place for distressed borrowers, many property owners in delinquency face the risk of foreclosure. However, despite the negative trends, Realtor® Anthony Wesbrook is offering distressed property owners hope through short sales.
“People understand generally that a foreclosure is really bad, but they may not understand the specific ways in which a foreclosure can negatively impact someone’s life and credit in the long term.” Said Wesbrook. “For instance, if a foreclosure occurred, it can be very difficult finding a lender that will lend money for future real estate purchases.”
“With the short sale options that is offered to those in default, they are able to avoid foreclosure altogether! While it does leave a negative impact on their credit report, it is nowhere near the same level of impact that a foreclosure and eviction can have.”
What is a short sale? A short sale involves a property owner selling their property for less than the value of the amount owed on the remaining mortgage. The term “short” refers to the shortage of cash needed for the mortgage repayment. In a short sale, the current lender may agree to a short sale to recoup partial mortgage funds owned. While a lender takes all proceeds from a short sale, Wesbrook advises that a short sale is still a much better option than a foreclosure.
“The impact of a foreclosure can stay with an individual for an awfully long time. It’s always advised for financially distressed sellers to consider short sale because of the many benefits it can offer in a distressed situation.” Said Wesbrook.
“With a short sale, there can be several benefits including sellers eliminating any remaining mortgage debt owed and avoid the negative and possibly devastating impact of a foreclosure on their credit report.” Said Wesbrook. “In certain cases, short sale sellers may be eligible for relocation assistance up to $10,000 at the closing table. Just to qualify for relocation assistance, the borrow must be using their home as their primary residence. Not all lenders participate in these programs and about 70% of clients get this assistance.”
For more information in the Chicagoland area, contact Anthony Wesbrook of HomeSmart Connect at www.AnthonyWesbrook.com or 708-608-0217.