Avoiding Foreclosure in St. Louis by Utilizing a Short Sale

A short sale is when a property is sold for less than what is owed the mortgage. This option is usually considered when a homeowner can no longer afford their mortgage payments, and the lender agrees to let them sell the property for less than the amount owed. Short sales may be a way to avoid foreclosure in St. Louis. Here’s an example:

  • Your mortgage balance is $200,000, while the value of your home is $150,000.
  • You’re having difficulty paying your mortgage and have contacted your lender to inquire about the possibility of a short sale.
  • If your lender approves, you have the option to sell your home for $150,000 and the lender will waive off the remaining $50,000 that you owe.

If you’re a homeowner facing foreclosure, short sales may be a helpful option. They can allow you to sell your home quickly and avoid the negative credit score impact of foreclosure.

The Disadvantages Of A Short Sale

Short sales have certain drawbacks. The most significant one is that you might not be able to sell your house for the full amount owed on the mortgage. This is because the lender would only agree to a short sale if the sale price covers the remaining balance on the mortgage, as well as any other costs related to the sale.

Secondly, it’s important to understand that opting for a short sale could adversely impact your credit score. Although a short sale isn’t the same thing as defaulting on your mortgage, it can still harm your credit score and make it harder to get a loan later on. Additionally, short sales are often complex and can take many months to complete, without any guarantee of approval from your lender.

The Advantages Of A Short Sale

Short sales have a few advantages. One of them is that it can help you evade foreclosure and mitigate its negative impact on your credit score, which can make it challenging to purchase a home in the future. Although a short sale can still adversely affect your credit score, it usually does not have as much impact as a complete foreclosure.

Another benefit of a short sale is how it can speed up the selling process of your home. In situations where you’re at risk of foreclosing on your property, your lender may be more willing to grant approval for a short sale than a standard sale. Opting for a short sale can help you dodge the anxiety and ambiguity that comes with foreclosure.

Third, opting for a short sale can potentially reduce your closing costs. In a regular home sale, the seller is responsible for covering the closing costs. On the other hand, in a short sale, your lender may agree to waive some or all of these costs.

If you’re thinking about a short sale, it is crucial to take the time to evaluate the advantages and disadvantages thoroughly. Additionally, consulting a real estate agent and a financial advisor is recommended to receive guidance on whether a short sale is the suitable choice for your situation.

Summary of Pros and Cons of a Short Sale From Investopedia.


  • This service allows homeowners to get rid of a debt they cannot repay.
  • Compared to a standard home sale, homeowners have to pay a reduced amount of fees.
  • Short sales enable buyers to purchase real estate at a reduced price.
  • Lenders have the option to consider a portion of the debt as a loss and not collect it.


  • Short sale involves less legal disclosure compared to a standard home sale.
  • Short sale requires additional paperwork.
  • Short sales can damage the seller’s credit rating, but less than a foreclosure.

Alternatives To A Short Sale In St. Louis

If you are at risk of losing your property due to foreclosure, there are alternative solutions you can explore aside from opting for a short sale. Some of these may be worth considering, including:

  • Reinstating your loan: You can reinstate your loan and prevent foreclosure if you can gather enough money to make up for the missed mortgage payments.
  • Negotiating a loan modification: It is possible that your lender could modify your loan terms to make your mortgage payments more affordable. Modifications could include a lower interest rate or a longer loan term.
  • Filing for bankruptcy: If you’re struggling to keep up with your mortgage payments and you’ve already tried everything else, it might be worth considering filing for bankruptcy to halt the foreclosure process. However, it’s important to keep in mind that declaring bankruptcy could potentially harm your credit score.
We Buy Houses St. Louis

Selling Your Home to a Cash Buyer

If you’re facing foreclosure and need to do a short sale on your home, consider working with a professional “we buy houses” company that specializes in buying houses. Many lenders approve short sales to these companies, especially if the offer is sufficient.

Companies that are cash buyers don’t require financing to buy your home. This can accelerate the home-selling process, especially if you’re under foreclosure. Moreover, such companies usually offer higher prices for homes than customary buyers, which can help you get a better deal for your property.

It is essential to conduct thorough research before collaborating with a “we buy houses” firm. Certain companies may exhibit predatory behavior and exploit homeowners who are struggling with foreclosure. Therefore, it is crucial to comprehend the conditions of the agreement before affixing your signature.

Here are some things to keep in mind when working with a professional home buying company:

  • It is recommended to obtain a written record of all details including the purchase price, the closing date, and any fees or expenses that you will have to handle.
  • It is important to clarify the company’s process for selling your home. You can ask about their marketing strategy and the expected time frame for the sale’s closure.
  • Obtain references from former clients to gain insight into the company’s performance.
  • It’s important to be ready to negotiate with the company regarding the price they offer. Don’t accept the first offer they present and be prepared to discuss and potentially counteroffer. If you’re not satisfied with the final offer, it’s okay to walk away.

If you are thinking about working with a “we buy houses” company, make sure to do thorough research and fully understand the potential risks. Nonetheless, if you come across a trustworthy company with a good reputation, they can be a viable solution for homeowners dealing with foreclosure.

Advantages Of Selling To A Professional Home Buyer

Selling your home to a cash buyer has some benefits. The sale process is faster as cash buyers don’t need financing, eliminating the time needed by traditional buyers. This can save time and reduce stress.

Second, you don’t have to prepare your property for sale if you’re selling to cash buyers. These buyers are not as particular about the state of the house and won’t demand any cleaning, repairs, or landscaping updates. Although their offer may be lower than a traditional buyer’s, they can help you avoid expenses and the adverse consequences of a foreclosure.

Third, selling your home to a cash buyer means you are not responsible for covering any closing costs. This can result in savings of thousands of dollars.

Selling your home to a cash buyer can be a good way to avoid foreclosure if you’re facing it. It’s a quick, easy, and affordable option. You can either still utilize a short sale with the professional home buyer or sell to them directly if your mortgage payoff amount is agreeable.

Fast Lane Realty In St. Louis Can Help Guide You

If you’re facing situations like illness, job loss or divorce and need to sell your house quickly, a professional home buyer can be very helpful. If you’re considering a short sale, get in touch with us. We can purchase your property as-is and don’t require any updates, repairs, or cleaning. At Fast Lane Realty, we’re able to move quickly and can often close the deal in as little as one week. Fast Lane Realty buys homes all over Missouri like St. Louis, St. Peters, St. Charles, and more. We buy different types of homes, whether they are attractive, unsightly, in good shape, or need many repairs. We also buy homes that have a lot of equity or little to no equity. We do not charge commissions or closing costs. You can learn more about our process on our website. If you want to know how much we can pay for your property, please call us at 314-310-8338. We will give you a free no-obligation offer, and you have nothing to lose by exploring this option.

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