Should I Do a Short Sale or Just Let My Home Go Into FORECLOSURE?
This is a question many homeowners ask and I have some reasons for you NOT to let your home go into foreclosure.
You will always have to disclose that you had a foreclosure on any mortgage application and many jobs applications you submit in the future. Typically this will make your interest rate go up and the points you pay for your loan when you can finally get a new loan many years from now.
- Credit Scores (FICO) will be lowered by 300+ points and a foreclosure is the most devastating credit issue in relation to future credit availability.
- You have probably heard of credit repair companies. Well, a foreclosure on a credit report is almost impossible to ever have removed or have the wording changed.
- If you took out a second (Home Equity Loan) after you bought your home, the lender may try to come after you for the amount and seek a deficiency judgment in court. They can get a lien and if you ever get another property or hit the lottery, they can collect on the lien.
- Many employers run credit checks on prospective employees and when they see the foreclosure show up, you may not get the job.
- If you have a job with a security clearance, a foreclosure can put your position in jeopardy; Military, Law Enforcement and Government employees.
- After the foreclosure and eviction process by the bank, when you try to rent a place to live and the rental management company sees the eviction and foreclosure on your credit report, they probably will not rent to you or if they do they may want more deposit down.
And the second most asked question…..How many years will it take before I can buy a house again after a foreclosure? With a short sale, the lenders typically say 3-4 years but a foreclosure can be 7-10 years.
- You are proud and probably do not want your neighbors to know so if you sell your home, they will applaud you in this market. If you hide your head and think it will go away; the local law enforcement will eventually be knocking and posting an eviction notice. Now this can be embarrassing for your kids and yourself.
- Also many of the banks are giving money to the homeowner to assist them in moving to a new residence. This money can help to call the movers, pay first and last rent, cleaning deposits or just other expenses.
- Only you can make that decision but isn't it better to try to do the short sale as it can be easier on you and your family.
Isn't this what you want? Walk away clean and not worry about any bill collectors calling you in the future.
If you are looking for a professional and experienced agent, I am just a click away. Google me at Kristin Hamilton-Real Estate Agent. Homeowners and Buyers both will find my services top notch and successful. Call me to sell your home. I have experience doing short sales and have sucessfully closed them for homeowners. I have taken many hours of training and continue to go to updated training. Make sure you get a Realtor who has this training or you are probably not going to be sucessful. I am a CDPE- Certified Distressed Property Realtor.
I am waiting for your call! 909-557-6966.
This post was authored and or picture was taken by Kristin Hamilton. ©2012, All Rights Reserved, This content may not be reproduced or reprinted (Except for ActiveRain Re-blogging) without express written permission of Kristin Hamilton, Keller Williams Realty, Redlands, CA.