San Jose short sales happen when the remaining balance on a home’s mortgage overshadows the home’s current market price. We refer to homes in this position as being “underwater”. If this happens to your San Jose home and you want to avoid a foreclosure at all costs, you have to act quickly – are you going to try a San Jose short sale, or go for a loan modification? Your personal financial situation will determine which option is the best for you – but the speed with which your lender processes requests is also important. If you have lost your job, or feel that you will not be able to start making mortgage payments again, a short sale might be your only choice.
Foreclosure is scary – and often all the options, even short sales, seem terrifying at the time. But nearly 1 in 6 homes in the country is underwater, and short sales have saved many owners’ credit scores. In some ways, short sales operate the same way as do foreclosures – the bank loses some cash, but the owner is no longer liable for the mortgage and someone else gets the house.
The fundamental distinction between short sales and foreclosures are: (a) short sales require bank approval, but foreclosures happen at the bank’s command (b) foreclosures are devastating to an owner’s personal credit fitness, and may keep the owner from ever qualifying for a mortgage again; short sales, while they may affect your credit score, are infinitely less damaging and in some cases do not even need to be disclosed.
If you own a home in San Jose and have recently fallen behind in your mortgage payments, it may be in your best interest to learn a little about the San Jose short sale process. A San Jose short sale isn’t exactly a formula – each one is different, and the process can drag on and get messy. If you haven’t lost your job or you feel confident in your ability to get a good mortgage modification, you may not need a short sale. However, if you believe that the foreclosure of your San Jose home is a clear and present danger, a short sale could get you out of the mortgage (and the home) without crippling long-term damage to your overall financial fitness.