At the Troy Funk Team, Short Sale Experts with Keller Williams Realty, in Sarasota, FL, we have helped many homeowners avoid foreclosure with a short sale in Sarasota. There are many benefits to choosing to short sale your property vs. letting it go into foreclosure. Here are our top five...
1. Preventing Foreclosure & Deficiency Judgments in Sarasota County
If you qualify for a short sale, you have the potential to stop foreclosure proceedings against you, and reduce your chances of being dealt a deficiency judgment. In general, lenders prefer short sales over foreclosures. Lenders tend to lose more in legal foreclosure proceedings than they do in short sale negotiations. Therefore, your lender is likely to delay a pending foreclosure in order to approve a pending short sale in Sarasota County, Florida.
2. Reducing Your Credit Damage
In most cases, short sales have less impact than foreclosures on your credit. Foreclosures can negatively impact your credit up to 350 points. In contrast, most short sales have a 100 point maximum impact.
3. Improving Your Financial Recovery
After your short sale, you can usually secure new financing and buy another home within 2 years. In contrast, foreclosure and bankruptcy can take up to 10 years.
4. Reducing Your Stress & Improving Your Transition
In foreclosure, you are essentially forced out of your home on a date decided by the court. In a short sale situation, you have the dignity of negotiating your closing date and staying in your home until the closing.
5. Offering Potential Tax Savings in Sarasota County
If you qualify, there may be more favorable tax treatment on a short sale compared to a foreclosure. The Mortgage Forgiveness Debt Relief Act of 2007 relieves homeowners from having to pay taxes on the difference between their loan amount and the short sale price.
If you or anyone you know is facing foreclosure in Sarasota County, Florida, please contact the Troy Funk Team. We are experienced, qualified, and ready to help.