Before you consider a foreclosure, let’s take a look at why an agent would recommend a Santa Monica short sale. Even if your home is not in the foreclosure stages, if when you sell your home it will not be enough to pay off your current mortgage, it might be best to consider a Santa Monica short sale. You may have heard that completing a short sale on your home will protect your credit. This is only somewhat accurate. Your credit will fall dramatically if you fall behind on your monthly mortgage payments. There is one exception to this situation. If you do not have any 60-day plus late pays listed on your credit report, Fannie Mae could potentially offer you another loan to purchase a home again. Typically most people who sell their home on a short sale are more than 60 days late on their mortgage and are in default. In this case, it wouldn’t apply to them. Something you should know about your Santa Monica short sale is that it could potentially harm your credit score. Usually it will not happen right away, but unless the bank has agreed to not report the shortage, the bank may report it as a delinquency or a derogatory record and collection.
There are several reasons why an agent might recommend a Santa Monica short sale. One reason your lender might suggest a Santa Monica short sale is because they get paid by the lender to do the short sale, not from the seller. The agents do not get paid if the seller loses the home to the bank by going all the way to the foreclosure process. If for some reason the home does not sell as a Santa Monica short sale, the agent will still get free publicity from signs, open houses and marketing. So, the Santa Monica short sale can be complete at no cost to you. Why not get started today?