Is A Bank Short Sale My Only Choice?

By Anthony Mauwer

A bank short sale is not the only way to get out of foreclosure - but it might be the best way. If you're already in this situation, you're already straining under intense financial pressure. Much of this anxiety should be alleviated if approved for a short sale, because you'll be in the best position possible to purchase another home.

It is extremely difficult for us as homeowners to accept the fact that our home may be lost, but if it's going to happen, avoiding foreclosure is the highest priority. It's important for us to understand clearly that a short sale is not the"only" way out, but it may be the "best" way out. If we foreclose, the lender can sue us, garnish our wages, put a lien on other property, and hound us for years. All this in addition to the destruction of our credit rating. With a bank short sale - if handled correctly, we're making an agreement with our lenders beforehand to settle most of these issues now.

A bank short sale can cause high levels of stress and anxiety. It's easy to feel overpowered by all of the accountants, tax issues, lawyers, forms, legal jargon, and phone calls. This is not even considering the financial difficulties we're experiencing in other areas. It is in this situation that we must not forget that all parties involved in our short sale are trying to get as much money as they can. They may make surprise requests in the final weeks/days. Prepare yourself for this possibility - don't be bullied.

These last second surprises can be avoided if we seek expert advice from the outset. We don't want to attempt a bank short sale without expert assistance of some kind - and should not procrastinate in acquiring it. Throughout the process we'll deal with complex issues of property taxes, our loan, and real estate. We'll need an expert in each of these areas. If you look in your area you should be able to find services that provide you with the expert assistance of qualified accountants, lawyers, and real estate agents - who will be paid by your lender. As with any type of service you need to exercise discretion in order to get the best assistance available.

Keep in mind is that the bank is not exactly enthusiastic about doing the short sale. Yes, they do want to avoid a foreclosure also, but their attitude towards a short sale is definitely not to be considered positive. They are trying to recoup as much as they can and at times may be rather difficult to deal with. If you keep this in mind, you'll go a long way in understanding why certain aspects of the process move so slowly when you know in your mind that they should be moving faster. Keep a cool head and be patient. It's going to be like trying to work out a deal with the government - they'll answer you when they're ready - and not a second before.

The entire short sale process is strenuous and all parties may not agree on every issue - but if we can tough it out, we'll be the winners in the end. We'll be successful if we avoid foreclosure and bankruptcy, get our debt forgiven, and come out without any unpaid property taxes. This is why a bank short sale is such a sweet deal. It won't be perfect, but at least we'll be in a position to buy another home. Completing a short sale puts us in the best position for the future. No, a bank short sale may not be the only way out, but it is one of the better options!

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