In most cases a short sale is a better option than a foreclosure. A foreclosure has longer lasting repercussions than a short sale.
You may be eligible for a short sale if :
You have a hardship due to loss of job, medical expenses, divorce, etc.
If you are in a negative equity situation and you owe more than your house is worth.
You are unable to afford your current monthly payment.
You have a hardship due to loss of job, medical expenses, divorce, etc.
If you are in a negative equity situation and you owe more than your house is worth.
You are unable to afford your current monthly payment.
What effect does a short sale vs. foreclosure have on my credit?
A short sale has less of a negative effect on your credit score and credit history. Once a short sale is completed most lenders will report the debt as paid as agreed or paid as negotiated. This reporting is similar to a “settlement” on a credit card vs. a foreclosure is an unpaid debt.
A short sale has less of a negative effect on your credit score and credit history. Once a short sale is completed most lenders will report the debt as paid as agreed or paid as negotiated. This reporting is similar to a “settlement” on a credit card vs. a foreclosure is an unpaid debt.
Will I ever qualify for a mortgage again if I do a short sale?
Many people worry that they will never be able to get another mortgage if they do a short sale. Fortunately that is not true. In most cases, as long as you meet the general mortgage criteria for the specific mortgage you are interested in obtaining, you are eligible for a mortgage after 2 years from the completion date of a short sale vs. a foreclosure is 7 years.
Many people worry that they will never be able to get another mortgage if they do a short sale. Fortunately that is not true. In most cases, as long as you meet the general mortgage criteria for the specific mortgage you are interested in obtaining, you are eligible for a mortgage after 2 years from the completion date of a short sale vs. a foreclosure is 7 years.
Does a short sale become part of my permanent public record?
A short sale does NOT become part of a permanent public record vs. a foreclosure which DOES become part of your permanent public record.
Will I owe any money once a short sale is completed?
Once a short sale has been negotiated you will not owe any money to the lender as long as the agreement includes the waiver of any deficiency judgment vs. a foreclosure which doeshave a deficiency balance. A deficiency judgment is the amount the mortgage holder owes to the lender for the difference between the proceeds received from the sale of the property and the balance owed on the loan plus, in many cases, all additional costs incurred due to the foreclosure process.
A short sale does NOT become part of a permanent public record vs. a foreclosure which DOES become part of your permanent public record.
Will I owe any money once a short sale is completed?
Once a short sale has been negotiated you will not owe any money to the lender as long as the agreement includes the waiver of any deficiency judgment vs. a foreclosure which doeshave a deficiency balance. A deficiency judgment is the amount the mortgage holder owes to the lender for the difference between the proceeds received from the sale of the property and the balance owed on the loan plus, in many cases, all additional costs incurred due to the foreclosure process.
Why shouldn't I just “walk away “from my home since I am so far behind on payments?
The single most important reason to do a short sale vs. foreclosure is……. If you allow the home to foreclose the lender has up to 5 years to go to a judge and ask for a deficiency action. If granted the lender has up to 20 years to come after the original mortgage holder(s) for the full amount of the deficiency judgment, which in many cases is tens of thousands of dollars if not $100,000 or more. The banks will usually wait for the homeowner to get “back on their feet financially” so they have assets to confiscate. A short sale truly gives you a “fresh start.”
The single most important reason to do a short sale vs. foreclosure is……. If you allow the home to foreclose the lender has up to 5 years to go to a judge and ask for a deficiency action. If granted the lender has up to 20 years to come after the original mortgage holder(s) for the full amount of the deficiency judgment, which in many cases is tens of thousands of dollars if not $100,000 or more. The banks will usually wait for the homeowner to get “back on their feet financially” so they have assets to confiscate. A short sale truly gives you a “fresh start.”
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