What If I Owe More than My Royal Palm Beach House Is Worth and Still Have to Sell?
Owing more than what your home is currently worth is unfortunately a common problem for many homeowners in Royal Palm Beach Florida. Unlike many kinds of financial challenges, however, this is not something you can blame yourself for.
The continuing economic crisis that’s struck the country and is still plaguing the global market as well as the collapse of the real estate market all contribute to your present situation. In the end, however, it’s the homeowners who bear the greatest burden. Thankfully, you can still save yourself from financial ruin by applying for a Royal Palm Beach short sale.
What are short sales?
You may already be familiar with the term but have never gotten around asking what exactly they pertain to. Well, short sales are a special type of real estate transaction that involves creditors and homeowners.
Short sales are exactly about selling your home for less than what you owe.
If your short sale application for your home in Royal Palm Beach is approved, you will be able to sell your home at an amount that is less than what you have borrowed against it.
Let’s say your home is worth $240,000.
Your loan balance, however, amounts to $340,000.
If you are allowed to short sell your house, then the balance of $100,000 ($340,000 - $240,000) will be either forgiven completely or your creditor would provide you with new terms and conditions for its settlement. In case of the latter, you would probably be asked to sign an unsecured promissory note for it.
Short sales can’t push through without your creditor’s approval.
Even if you are the rightful owner of the house, a creditor also has certain rights to your property simply because you used your own home to borrow money. Creditors have the right to reject applications for a Royal Palm Beach short sale if they feel they are being “shortchanged” too much.
Short sales always have to do with mortgaged or encumbered properties.
After all, if it’s not encumbered then you wouldn’t have to apply to anyone for approval. It’s your decision alone if you want to sell your home or not and for whatever price you have in mind.
Short sale packages have to be complete before they are passed to a creditor.
Applying for a Royal Palm Beach short sale is not just a matter of calling or writing to your creditor and asking him to approve your application. Getting a short sale application is a process and one you will have better chances of completing with the help of a good real estate agent.
