Short Sale vs. Cash Home Sale: Which is the Best Option to Stop Foreclosure in Missouri?

Foreclosure can be a stressful and overwhelming experience for any homeowner. It is a legal process that allows a lender to take possession of a property when the homeowner fails to make their mortgage payments.

However, there are options available for homeowners who want to avoid foreclosure. Two popular options are short sales and cash home sales. Below, we look at the pros and cons of each option and provide tips for choosing the best option for your situation.

What is Foreclosure in Missouri?

Foreclosure is a legal process that occurs when a homeowner fails to make their mortgage payments. When a homeowner misses a payment, the lender will send a notice of default. If the homeowner doesn't make up the missed payment within a certain period, the lender will begin the foreclosure process.

Foreclosure can have long-lasting negative effects on your credit score and financial future.

Fortunately, you have options to avoid foreclosure. One option is a short sale. Another option is a cash home sale. It is important to consider your options and take action as soon as possible to avoid foreclosure.

What Is a Short Sale?

A short sale occurs when a homeowner sells their property for less than the amount owed on the mortgage. The lender agrees to accept the sale price as payment in full for the mortgage. Short sales are often used by homeowners who are facing financial hardship and can no longer afford their mortgage payments. It is important to note that short sales can take a long time to complete and are not guaranteed to be successful.

Pros of a Short Sale

• One of the benefits of a short sale is that it can help homeowners avoid foreclosure. Foreclosure can have long-lasting negative effects on a homeowner's credit score and financial future.
• A short sale can also help homeowners avoid deficiency judgments. A deficiency judgment is a court order that requires the homeowner to pay the difference between the sale price and the amount owed on the mortgage.
• Another benefit of a short sale is that it can help homeowners avoid the costs of foreclosure. Foreclosure can be expensive, and homeowners may be responsible for paying legal fees and other costs associated with the process. A short sale can help homeowners save money by avoiding these costs.

Cons of a Short Sale

• One of the drawbacks of a short sale is that it can take a long time to complete. Short sales involve negotiations with the lender, and the lender may take several months to approve the sale. This can be frustrating for homeowners who are facing financial hardship and need to sell their property quickly.
• Another drawback of a short sale is that it can be difficult to find a buyer. Buyers may be hesitant to purchase a property that is being sold through a short sale. This is because short sales can take a long time to complete, and there is no guarantee that the sale will be successful.

What is a Cash Home Sale?

A cash home sale is when a homeowner sells their property to a cash buyer. Cash home buyers are typically real estate investors who are looking for properties to add to their portfolio. Cash home sales can be completed quickly and are often used by homeowners who need to sell their property quickly.

Pros of a Cash Home Sale

• One of the benefits of a cash home sale is that it can be completed quickly. Cash buyers are typically real estate investors who are looking for properties to add to their portfolio. This means that they have the funds available to purchase the property quickly. This can be a great option for homeowners who need to sell their property quickly.
• Another benefit of a cash home sale is that it can help homeowners avoid foreclosure. By selling the property to a cash buyer, the homeowner can avoid the foreclosure process and the negative effects that it can have on their credit score and financial future.

Cons of a Cash Home Sale

• One of the drawbacks of a cash home sale is that the sale price may be lower than the market value of the property. Cash buyers are looking for properties that they can purchase at a discount. This means that the homeowner may not receive the full market value of their property.
• Another drawback of a cash home sale is that it may not be the best option for homeowners who have equity in their property. If the homeowner has equity in their property, they may be able to sell the property for more than the amount owed on the mortgage. In this case, a short sale may be a better option.

Comparing Short Sale vs. Cash Home Sale in Missouri

When deciding between a short sale and a cash home sale in Missouri, it is important to consider the pros and cons of each option. If you are facing financial hardship and need to sell your property quickly, a cash home sale may be the best option. However, if you have equity in your property and can afford to wait, a short sale may be a better option.

When choosing between a cash home sale vs short sale, consider the factors.

• Consider your financial situation and your goals.
• Determine the market value of your property.
• Consider the pros and cons of each option.
• Make a decision based on your needs and goals.

Foreclosure can be a stressful and overwhelming experience for any homeowner. However, there are options available to avoid foreclosure, including short sales and cash home sales. If you are facing foreclosure in Missouri, it is important to take action as soon as possible and explore your options.

Sell Your House Fast in Kansas City, Missouri

If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact KC Cash Closings. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 816-659-2259 to get a fast cash offer from our local home buyers in Missouri.