Because of our economic instability, individuals who could religiously repay loans in the past cannot do so now. If we can’t repay the loan, foreclosure will be just around the corner. Neither party to the loan wants to enter the foreclosure stage. Therefore, in order to repay the loan, we have been looking for other options than real estate recycling. Buying empty real estate is an option. This is a financial solution for selling houses at a price lower than the mortgage balance. Pay the balance of the loan with the profits from the sale.
Some people believe that short selling is a financially wise decision. No matter how much money you spend, you must pay your debts. Then you won’t worry too much in the future. Short selling may be bad for you at first. Because the price you get is lower than the price of the house you just bought. However, over the years, the housing value in the real estate market has continued to decline. This means that all owners are on the same boat. If we have to sell, maybe we have no choice. We can only choose to sell short to increase our opportunities to sell residential real estate.
Under the Mortgage Relief Act of 2007, people who decide to sell real estate can get tax relief, and the Economic Stability Act of 2008 extended the Act to people who made such transactions in 2012. They are also eligible to participate in the government’s “affordable housing repurchase program” or HAFA. You can also avoid the stigma of foreclosure and restore your credit more quickly than you can through a property recovery process. If you find yourself in trouble, please look at your options and think twice before excluding real estate sales.
