Short sales in Greater Cleveland can work for all types of properties, including private residences, apartment buildings, condos and even parcels of land. Many sellers choose the short sale option because they are underwater on their homes, meaning they owe more on the house than its market value. Naturally, in these situations, homeowners are also frequently experiencing financial difficulties. As a result, some decide to make a deal with the bank allowing them to sell their home for less than is owed. Both the seller and the bank usually take some losses.

A short sale cannot happen without bank approval. However, most banks would rather approve a short sale than have a homeowner actually default on his mortgage payments; banks will often agree to a short sale to avoid a foreclosure. In the end, a buyer might get a home at a reduced price because both the bank and the existing homeowner want to get out from under the home as soon as possible.

Short Sale vs. Foreclosure:

The most important difference between short sales in Greater Cleveland and foreclosures, is that the homeowner retains control over the short sale and his credit may not suffer as much as in a foreclosure. Sellers should be aware that both short sales and foreclosures will impact one’s credit; there are many variables, so please contact Joseph Gentile for details. In some cases, credit ratings can drop by more than 100 points. Most financial advisors will recommend that the seller pursue all other options before foreclosing on a house.

Banks typically prefer short sales over foreclosures because the owner continuing to live in the home means the home will be better cared for than an empty, foreclosed dwelling.

For more information contact Joseph Gentile at 1-440-479-3545