204. Foreclosure or Short Sale of Your Universal City TX House? A Detailed Comparison

We buy houses in Universal City Texas and provide residents with the ideal way to sell their homes fast by offering cash for houses in San Antonio.  Unfortunately in this business, we frequently work with homeowners who are going through a rough patch and are struggling to make their mortgage payments on time.  The first thing we do is assure them that they are not alone.  Second, we want to make sure they don’t lose what is often the biggest investment they have made: their home.  If you are having trouble paying your mortgage, let’s discuss your options to avoid foreclosure.

Foreclosures Happen All The Time.  You Aren’t Alone.

Usually, the foreclosure process will not begin until you have missed between 3-6 payments. First of all, it is important to understand that foreclosure is a legal process. The first step is called pre-foreclosure or notice of default. This means that the property is in default and the bank has made you aware that they may or may not foreclose on the property.  In Texas, foreclosure can happen quickly after the notice of default.  

It is important to know how foreclosure can and will affect the person or people going through the foreclosure.  It will impact your credit score and would also show up in any reports that future landlords would run. The foreclosure stays on your credit for at least 7 years before falling off, sometimes 10 years.  So what are your options to avoid foreclosure? 

Is A Short Sale in Texas Really The Answer?

During the foreclosure process as described above, you have the opportunity to list your Universal City TX house as a short sale. The best time for a short sale is the time period when you realize you are unable to make your payments as outlined in your loan agreement and before the lender files legal action against you.  You will be able to list your house on the market and try to get an offer that will satisfy the balance of your loan or get really close to it. This is often a difficult process because you will have to be in constant communication with the lender about the offers you receive and will have to wait for them to approve or counter offer the offers you receive. If you do have an offer that the bank is willing to accept, selling your house would relieve you of some of the credit damage of having a foreclosure, although it would still negatively affect your credit.

So short sales can be an option but come with negatives as well.  They are difficult, and oftentimes frustrating due to lender restraints.  They also will still impact your credit negatively and there can be tax ramifications as well.  The amount the bank forgives during the short sale can be considered taxable income so if they forgive a large amount, you could be surprised with a large tax bill the next year.

Sell My House In Universal City Texas

Knowing what steps to take to avoid foreclosure is key.  Short sales are one option.  There are other options available as well.  Our company provides many of these options to homeowners in the San Antonio area.  We specialize in helping homeowners out of their rough situations.  We have the resources with attornies, title companies, and lenders to be able to offer assistance even if we aren’t the ones who buy your house.

Want to know how to best prevent home foreclosure? Work with Capstone Homebuyers!  We’re the local homebuyers in Universal City, TX and All Of San Antonio and we’d like to make you a fair all-cash offer on your property. We work with home sellers who are having trouble getting out of their homes the traditional way… or who can’t (or don’t want to) go the usual route of listing with an agent.

Contact Capstone Homebuyers today at (210) 793-4448 to see what options we could offer you so you wouldn’t have to decide which would be better, a foreclosure or short sale of your Universal City TX house.