6 Reasons Why Short Sales Are Better Than Foreclosures
If you own a home along 30A and for some reason, could no longer continue making your mortgage payments, or are already in default status, you are at the risk of losing your home to foreclosure.
There is a better alternative to foreclosure, and that is doing a short sale.
Short sales offer distressed homeowners of 30A luxury homes more advantages over foreclosure.
Here are 6 benefits of a short sale:
1. Faster
Once you have an executed purchase and sale agreement a short sale only takes, on average, 90 - 120 days to complete as compared to a foreclosure. In the State of Florida, it could take over a year.
2. Less impact on credit score
A short sale can negatively affect your credit score but its impact is not as damaging and long lasting as a foreclosure.
3. Relocation incentives
Some banks offer relocation incentives for qualified homeowners who sell their home as a short sale.
4. A short sale allows you to negotiate with the bank
With all short sales there is a deficiency (amount you owe on your mortgage vs. what the home is selling for). You could be liable for that amount. In many situations the bank will waive the deficiency. If you lose your home to foreclosure, there is no way of negotiating with the bank and you may end up paying thousands of dollars.
5. Shorter waiting period to buy a new home
Homeowners who have gone through a short sale generally need to wait only 2 years before they could qualify for a new home loan (or sometimes even less if they qualify for certain government programs). The waiting time to buy a new home after foreclosure is 7 years.
6. Less emotional stress
Short sales help the distressed homeowner avoid the stigma and emotional stress associated with foreclosure proceedings.
A short sale is definitely the better option than a foreclosure when you find yourself in a situation where making your mortgage payments is no longer possible. If you feel that you need to do a short sale, work with an experienced short sale agent who can help you navigate through the complicated short sales process.
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