Homes for Sale Southeast Michigan: Should You Consider a Short Sale on Your Home?

Posted in Homes for Sale Southeast Michigan by Michigan Real Estate Expert on March 11th, 2010

A short sale happens when a lender agrees to accept less than the balance remaining on a home. It is a way for sellers to avoid foreclosure and put their home on the list of homes for sale in Southeast Michigan.  

It seems like a good idea for people who owe more on their home than it’s worth, but that doesn’t mean it is right for everyone. Should you consider a short sale on your home?

Pros to doing a short sale

  • You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.
  • You can still sell your property in a declining real estate market, even if you owe more than the home is worth.
  • Buyers sometimes get good deals on the property or may be able to buy one of the homes for sale in Southeast Michigan at market value in a popular area they couldn’t previously afford.
  • While a short sale isn’t ideal, it is typically better than a foreclosure which stays on your credit report for 10 years.
  • If your home goes into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.

Cons to doing a short sale:

  • The lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt.
  • The bank’s loss is considered taxable income for you, and you may have to pay taxes on the amount.
  • Short sales do stay on your credit report and may make it difficult for you to a get loan in the future.
  • You may have to find a real estate agent willing to work for a smaller commission.
  • Short sales take longer to close than traditional home sales.

Homes for sale in Southeast Michigan
Are you ready to sell your home?  I can help you decide if a short sale is right for you. Call me today at 248-514-2640 or email me at for more information about your selling options.

Lee Morof sells North Woodward Homes in Oakland County Michigan

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
Call:  248-514-2640

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