Sell or Short Sale

If you know that you cannot keep the home, because of a job loss or the bank’s unwillingness to work with you on a loan modification or workout, then selling the house is probably your best option. If you have some equity built up, say 20% or more, then you have a shot at having it sold and breaking even or even getting a little of your equity back if your house is in good condition.

If you do not have very much equity built up, then you will probably end up having to do what is called a short sale. A short sale is where you end up selling the home for less than what is owed on it. We would then negotiate with the bank to have any extra that is owed be paid by the bank, this would include realtor fees-taxes-title work etc. And, as part of the agreement, we would negotiate with the bank that you would not have to repay any of the shortage. This will help save what is left of your credit.