FORECLOSURE VS. SHORT SALE
Being behind on your mortgage payments and facing foreclosure are two of the most stressful financial difficulties you can face. After you've spent your life working to purchase a home but due to a variety of circumstances you suddenly find yourself under water. Phone calls from debt collectors and a bank threatening to foreclose could cause anyone to lose their mind. Let's take a look at what happens to you when your home is foreclosed on and what your other options may be.
Foreclosure
When your home is foreclosed on a few things happen. You lose your home, you have to become a renter and your credit plunges off of a cliff. The only benefit is you’re no longer responsible for the mortgage. Unfortunately, if you have dreams of owning your own home again, a foreclosure is difficult to bounce back from. It will stay on your credit report for up to ten years, you will need to wait a minimum of five years before you can attempt to purchase a new home and you will have to include it on your loan applications when applying for a loan.
A foreclosure has many downsides and almost no benefits.
Short Sale
A short sale occurs when you sell your home for less than the debt you owe on it. The idea behind a short sale is that it will allow the lender to recoup some of their initial investment and it also saves them from having to sell the home themselves. In order to perform a short sale you'll need an experienced short sale agent to guide you through the short sale process.
When deciding on a short sale you will have to consider that you will be showing your home to a variety of people and you will take a small hit on your credit report. However, the benefits are numerous compared to a foreclosure. First off you can buy another home immediately rather than waiting the obligatory 5 years after a foreclosure. When applying for a loan you will not have to mention your short sale as you would if you had a foreclosure. You also may qualify for a mortgage within 12-18 months after a short sale.
Contact Us
As mentioned before being behind on your payments and facing foreclosure are two of the most stressful financial difficulties you can face. In order to get through this you need someone on your side. Give me "Luis Carrillo, Realtor" a call and we can discuss your options and help you with the short sale of your home. Many Riverside and Inland Empire families have been assisted by me and my team at Keller Williams Realty. We specialize in assisting distressed families out of these situations. Contact us by phone 951.223.5847 or email Lcarrillo@kw.com and one of our specialists will assist you.
Comments(0)