Short sale options may be available for homeowners that are struggling with an underwater mortgage and are considering a strategic default on their home loan. Many people have simply walked away from their mortgage obligations when they have found that their home has lost such a substantial amount of value that it’s unlikely they can recoup their loss.
Homeowners in this situation may benefit more from a short sale as working with a lender to sell a home that has lost value is going to cause less of a hit to one’s credit score. There are many who feel that homeowners that strategically default will find a more difficult road when looking to buy another home in the future.
Individuals who short sell their home may see a drop in their credit score but it will not be at such a substantial level as to cause them great harm in the future. Also, it’s reported that many lenders will see short sales in a more favorable light than if a homeowner simply default on their home loan because they own more than their home is worth.
There may be problems for homeowners who have a second lien on their house as both the primary and secondary mortgage holders must agree to a short sale. However, homeowners that have seen a great deal of loss in the value of their home may have an easier road when it comes to short selling since banks may be more understandable in these cases.
Anyone with an underwater mortgage who may be suffering should contact their lender and talk about short sale options that may help them escape their underwater mortgage trouble.