Here is the short version. Going into foreclosure can stay on your credit record for more than the 7 years they say, and your credit score typically goes down over 300 points, whereas, a short sale may cause a reduction of your credit score by 50-100 points and does not stay on your credit report for nearly as long a time. Usually, it is on your credit report for about 2 years, and the consequences are a lot better, whereas, a foreclosure makes it very difficult to buy another home for a while. A short sale enables a person who is upside down on their mortgage to walk away from the debt as long as they can prove hardship to the lender. The hardship must be sufficient to negatively impact their financial situation, so they are unable to keep making their payments. There is no guarantee that a lender will approve the short sale, however, in many situations the owner can walk away from the sale of their home without owing the bank anything for the mortgage(s).
If you know of anyone who is in trouble with their home or real estate investment in the Miami, Miami Beach or Fort Lauderdale area and might need help with their property, please do not hesitate to call Michael Sahlman at 786.553.0697 or email him at Info@HomesforVIPs.com. The website is www.HomesFroVIPs.com. Michael Sahlman is a Certified Distressed Property Expert.
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