Most people are familiar with the term short sale by now. Well, Not all because I have seen some realtors who does not know what they are yet. I kind wish i was one of them sometimes! That means they didnt deal with any short sale. :) I think most realtor would agree with me that short sales are a pain in the neck! There are homeowners who are trying to modify their loan, but do not qualify for it. In my Opinion, their next best option might be short sale. Of course, this is case by case. I am sure an bankruptcy attorney somewhere there will disagree with me.
Some benefits of a short sale
· You are in control of the sale, not the bank.
· You may sleep better at night knowing who is buying your home.
· No social stigma of the "F" word, (foreclosure)
· If multiple unit property, you might stay paying rent to the new owner
· Your home sale will be handled like any other home sale.
· All lenders report short sales differently and some do not report them to the credit bureaus at all, but most of the time, short sale will show as SETTLE on your credit report
· Judgments are often negotiated between the seller (realtor) and the short sale bank
· You might or might not be issue a 1099 on the defficiency (you dont have to pay tax on your primary home)
· LESS COSTLY
· You could buy a house after 2 years according to HUD
· Your credit score starts raising after you sale (settle the debt)
· BEST of All, You will have Peace Of Mind (POM POM)! STRESS FREE and You wont be paying for a Under Value Property
Comparing to Foreclosure the disadvantage is minimum
· Yur credit score drops, this is because you were late
· You wont have your house
· Might have to pay taxes on a secondary home or investment home
Anything else you could add! Please comment on it!
If I can be of any help, Please let me know as well!