About to Experience Foreclosure? 4 Reasons Why You Should Consider a Short Sale
In many communities across the country foreclosures continue to be filed against homeowners at a record pace. The bottom line is that if you are facing the specter of foreclosure yourself, you are not alone. Moreover, if you are about to experience foreclosure, there remains at least one viable step that you can take in order to prevent foreclosure proceedings from commencing against you. In this regard, there are 4 reasons why you should consider a short sale if you have found yourself in a pre-foreclosure state.
Cutting Your Losses
The first benefit that you actually will be able to realize by undertaking a short sale in lieu of facing foreclosure proceedings is the “cutting of your losses.” Of course, your first thought is that this may not seem like a wise conclusion. However, the reality is that while you will lose money on a short sale (at least to some degree) you will be even further behind the Eight Ball financially if you end up having to go through a foreclosure.
When you have a foreclosure action initiated against you, the net result is that you become liable for far more than what you might lose in a short sale. In a foreclosure action, you are liable for the balance due on the loan. This includes money that is above and beyond what you might able to recoup through a foreclosure sale of the property. It also means that you will pay all fees and costs that are associated with the foreclosure itself. Therefore, by actively pursuing a short sale you really will be plotting a course of action that will save you money in the long run.
Protecting Your Credit
Another reason why you should seriously consider attempting a short sale of your property if you are looking at a foreclosure is that you will be better able to protect your credit in this manner. The bottom line is that a foreclosure action will be a serious black mark on your credit report. A foreclosure will seriously impact your credit score and history in a negative manner for an extended period of time.
By effecting a short sale, you avoid the full negative impact on your credit score and history that arises as the result of foreclosure case. As a consequence, you will be in a better position to put your own financial house (so to speak) back in order in the aftermath, once the sale goes through.
A Faster Solution
The short sale can also be a preferred course to take because it is a more efficient way of dealing with a mortgage loan problem. In this regard, the short sale can also be attractive to the mortgage lender, too.
A foreclosure proceeding really can drag out over an extended period of time. In the end, a long and protracted foreclosure case really is nothing more than a very expensive exercise in the inevitable. On the other hand, the advantage of a short sale is that the mortgage lender and the homeowner can find a workable (although not perfect) solution to the problem of a delinquent home mortgage loan.
Getting on with Your Life
Finally, and on a somewhat related note to a short sale being a faster solution, the short sale course also enables a homeowner who is facing foreclosure the chance to get on with life. Many a person who has been stuck in a foreclosure case rather feels as if his or her life is in limbo. In the end, the fact that you are able to head onward and upward in life rather than being mired in protracted and unpleasant litigation is a powerful motivation for considering and pursuing a short sale in and of itself.
Comments(1)