Many Orange County homeowners who are considering short sale have one question in mind “do I have to be behind on my payments to qualify for short sale?” and the answer to this question is NO. Why? Thanks to the success of short sales in Orange County more banks are now willing to work with homeowners who are current with their mortgage payments compared to a few years ago when they wouldn’t even talk to a homeowner unless they were behind on their mortgage.
Banks Prefer Short Sales
In today’s world, banks actually prefer short sales vs. foreclosures because; it enables them to sell the home quickly compared to the time the home may spend vacant as it goes through the foreclosure process. This also discourages neighborhood blight and the length of the foreclosure process which take a minimum of 120 days before the homeowner would have to leave.
Another reason why short sales are more desirable than foreclosures is that a short sale leaves less of an impact on the homeowners credit report than foreclosure and in many cases, the homeowner can buy another home again, in as little as four years compared to the seven years they would have to wait after going through a foreclosure.
Thanks to the willingness of banks to work with homeowners, more banks are now able to review a homeowner’s financial situation and judge if they are facing an eminent foreclosure or not. This is why more banks are working with homeowners who may be current with their mortgages and approving their short sales because, even though a homeowner may be current with their mortgage now, things could change for them six months from now and it’s in the banks best interests to act quickly and help the homeowner out.
Short Sale Incentives
Besides the incentives that make short sale more desirable than foreclosure, short sale is also a better option than foreclosure because, many banks are now paying homeowners, who may be underwater on their mortgages. These incentives often go by Cash-for-Keys (CFK) or Relocation Assistance Program (RAP) and the bank may be willing to pay for 2 months worth of housing expenses in exchange for the expedient move.
If you’re considering short sale and still have questions about short sales in Orange County, contact us today at (949) 272-0125 or complete the contact information below and we will get back to you ASAP.