Short sale options, for homeowners with an underwater mortgage, may be an excellent way to get out of a troubling situation as many homeowners are looking at mortgages that are much higher than the value of their home. This has been a frustrating situation for many homeowners and many have simply walked away from their mortgage obligation as a result.
Homeowners that work with their lenders on a short sale may be able to get out from their mortgage without doing much damage to their credit score. Lenders have been hesitant to short sale homes in the past but there are incentive programs that are in place to promote short sales from primary and secondary mortgage holders.
Short sales can be beneficial for lenders when a homeowner is struggling to make payments due to their home being underwater and it can prove to be an easier transition in selling a home as a situation in which a homeowner walks away can be troubling to lenders, as well as homeowners.
Homeowners are advised to talk to their lenders about short selling their home and make sure that if they agree to do so they are not going to be held accountable for any remaining principal payments. This has occurred with homeowners in the past, as they attempted to short sell their home and found themselves still paying on a home in which they no longer lived.