Chances you’ve heard of short sales and foreclosures, but have you ever heard of a quick sale? In the world of mortgages, there are many confusing terms and industry-related jargon. If you’ve fallen behind on your mortgage payment, you need to know all of your options. Keep reading to learn more about quick sales and how they can help you.
What Is a Quick Sale?
A quick sale is the in-between step between a short sale and foreclosure. When a borrower has fallen behind on their loan payments, their property goes into what is called preforeclosure status. If borrowers are unable to catch up on their loans within the preforeclosure period, their home will eventually fall into foreclosure, leaving a blemish on their credit score. Luckily for borrowers in this situation, there are quick sales.
A quick sale is when a borrower sales his or her home within the preforeclosure period. Quick sales usually result in enough revenue to completely pay off the mortgage and avoid foreclosure completely. Quick sales are generally sold below current market value and are often acquired by investors who can pay cash for the property and avoid lengthy lending periods.
What Are the Benefits of a Quick Sale?
The benefits of a quick sale are pretty straight forward. Short sales help you avoid foreclosure and save your credit. When a borrower defaults on his or her loan and goes into foreclosure, there are serious consequences. A foreclosure can drop your credit score by 200-300 points, and remain on your credit report for up to 7 years.
If you’ve found yourself in a tough spot financially and are unable to make your mortgage payments, entering into a quick sale is usually your best bet. At Tywin Homes, we can buy your home with cash and spare you the financial consequences of a short sale or foreclosure. Contact us to learn more.