Short Sale vs Foreclosure

Short Sale vs. Foreclosure

Because you can’t foresee the unexpected, occurrences such as serious illness, a major accident, divorce or job loss can result in losing your home to foreclosure due to inability to keep up with your monthly mortgage payment. Most people have to resort to foreclosure, which is something that can keep affecting you long after you lose your home by devasting your credit score. So it’s a good idea to understand the available alternatives should the worst occur.

Of all available options, foreclosure is the worst

The results of a foreclosure is the lender taking your house. You will lose your house and the lender can get a judgment against you for the arrearages you owe plus his costs for the foreclosure action. Your credit report will be in terminal condition for many years to come, worsening an already bad financial situation and making it very difficult to obtain any other kind of credit. There is no upside to foreclosure. It should be avoided at all costs.

Consider a short sale when foreclosure seems inevitable

A short sale is a popular option for homeowners with financial problems. In this case, you would sell your home for less than what you owe your lender; the biggest problem you will face is getting your lender to agree to a short sale. In many situations, they will not. Experts advise pursuing this option as soon as you realize that you are falling behind in your payments and most likely won’t be able to catch up. The longer you wait and the greater the amount you are in arrears, the less likely it becomes that your lender will even be willing to discuss a short sale.

short sale has disadvantages too

While a short sale will save you from foreclosure, it will also have a negative effect on your credit score, frequently lowering it by as much as 200 points but this can be overcome more quickly than the black mark of a foreclosure, especially if you manage to retain one or two credit cards and keep them current.

Almost any option is better than foreclosure

Simply stated, do everything you can before foreclosure occurs and do it as quickly as soon as possible. Don’t sit back and keep thinking, "What can I do?" Instead, consider that short sale and check with your lender before your options become more limited.

The One Best Tip I Can Give You: Don’t Do This Alone

Facing foreclosure is a scary thing to figure out on your own but having a real estate professional will help you through the process, lessening the stress and helping you through the process of another option.

You Need An Experienced Short Sale Agent!

If you are someone you know is having difficulties making your mortgage payments, please visit my website at www.HomesByVanna.com or call me at (907) 720-4663.

There may still be time for you!!!

Vanna S.

Keller Williams Realty

(907) 720-4663

www.HomesByVanna.com