Sacramento CA - The Stop Foreclosure Institute recently received a question from Christy. "Why would I do a short sale instead of saving the monthly payments and letting it go into foreclosure?" Christy asked.
Here is the answer. If you stop paying your mortgage, then you can live in your home rent free for 12-24 months, depending on the state you are located within.
I have seen lenders wait a year after the first missed payment just to file for foreclosure. Yes, you can live in your house for free for a long time. However, a short sale has many advantages over a foreclosure.
It does less damage to your credit and allows you to buy another home in 2 years versus the 5-7 years after a foreclosure. In addition, you can get some money as an incentive for doing the short sale.
If you want the benefits of both, then stay in your home until the foreclosure case has been started. Then, start working on a short sale with your agent. A short sale can take anywhere from 3 months to even 6-9 months to process.
This will allow you to salvage your credit and live "rent free" for 12-24 months. You will be able to wipe out all that upside down debt and move on with your life. Best of all, you will be eligible to buy another home in 2 years once you are back on your feet.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail or call me at.......
Keller Williams Realty