Short Sale vs. Foreclosure which is better?

Is a short sale any better than a foreclosure?

Anything is better than a foreclosure. Now whether a short sale is your best option is something we can examine by asking a few questions.

• Do you want a fresh start?
• Would you like a way to settle your debt with the lender for pennies on the dollar?
• Are you interested in buying a home again in the near future?

If you answered yes, to any of these, then a short sale may be your best option. Short sales allow you to start over, for example, if you owe $850,000 for a home that is only worth $600,000, your payment would still be $5,655 at 7% not including taxes, insurance and HOA. If you are having trouble paying this mortgage then why not lease a BEAUTIFUL HOME IN TALEGA that you CAN afford. You could eliminate almost $250,000 of that debt and buy the same house at $600,000 in the future for a better payment of $3,991 !

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But the lender said they could modify my mortgage?

Losing your home to foreclosure because you monthly payments are too high can lead to tremendous stress and poor decisions. Many times homeowners either fall prey to false hope and get ripped off by someone promising to modify their loan for a large up front fee, while others fall to the false hope of modification because lenders are 'reviewing' their loan mod application. When I ask lenders why they make the homeowner believe they are modifying the loan, they get upset with me and tell me, "sir we have to present these option whether they qualify or not, once we have done this we can move them towards foreclosure." So what they don't tell you is that you are losing valuable time while waiting for them to decline the modification.

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Loan Modification Numbers Disappoint

According to a major lender, the main problem with modification is that the homeowners do NOT qualify...even at 2% interest. In 2010 it is estimated that this MAJOR lender did approx 250,000 loan modifications. That is 250k vs the MILLIONS of mortgages in trouble. Other sources have reported that 98% of these modifications we in foreclosure again 12 to 24 months later. Those numbers are not encouraging for anyone. Not for the lenders, investors, homeowners, the economy in general. Many people in master planned community of Talega have been affected by this and feel that this is just delaying the inevitable. It is also dragging credit scores and communities down with it.

Short Sales do not come without risks

First you have to get approved, so you need to make sure you are working a certified agent like myself who has closed short sales in the past. Then do your homework, you will have a temporary ding on your credit, NOT as severe as a foreclosure, but you still need to plan for this. You must also speak to a tax professional about the tax consequences to short sale. Remember FORECLOSURE are NOT exempt from tax ramifications EITHER, in many cases they are more severe, so make sure you talk to your tax person today.

Learn Quickly And Easily If You Qualify For A Real Estate Short Sale

So how do you get started?

Depending on what part of the country you are from, certain laws may regulate the procedures to complete your short sale. If you are in Southern California give us a call 1-800-374-9110. If we cannot help you in your market, we can refer you to another certified agent with a proven track record to get your short sale done. We service our real estate clients, from San Clemente, to Del Mar. Talega San Clemente is a large community that we work in and have relationships in. So don't worry about where you are, if you need our services we will get you in touch with the right person.

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