Don't wait until your property is foreclosed! If you are facing default, consider putting your property on the market as a Short Sale.
Short Sale or Foreclosure? Which is the better option for a home owner?
Of all the available options-Foreclosure can be the worst!
In a foreclosure, the inevitable result is not only do you lose your house but you also face the following consequences:
- The lender may be able to get a deficiency judgment against you for the what you owe plus their costs for the foreclosure action.
- Your credit report will be adversely affected for many years to come making it very difficult to obtain any other kind of credit.
- Credit scores can be lowered by 200 plus points affecting your ability to apply for credit cards, a car, apartment, etc.
- The home owner will always have to disclose they have had a foreclosure on any mortgage application.
- Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy.
- A foreclosure is the one credit report item that is almost impossible to be "repaired".
- Foreclosure will remain as public record on a person's credit history for 7-10 years or more.
Consider during a Short Sale!
Time is of essence! The minute you realize that you can no longer afford your mortgage payments take action! The longer you wait, the less likely your lender will even be willing to discuss a short sale.
Remember- your lender has to approve your short sale! You can't simply not want to pay anymore. There must be an acceptable reason why you can no longer afford to pay your mortgage (i.e. lost of job, divorce, accident, etc) that your lender must be made aware of.
Each lender uses a certain criteria and procedures to approve a Short Sale. Contact us so that we can work with you in this process.
Advantages of a Short Sale:
- A short sale can save you from foreclosure
- A homeowner who successfully completes a Short sale will be eligible for a Fannie Mae backed mortgage after only 2 years
- On your credit score- only late payments on your mortgage will show and after sale mortgage will be reported as paid or negotiated. This may only lower your score as little as 50 points if all other payments are being made.
- A short sale's affect can be as remedied as little as 12 to 18 months
- A short sale is not reported on your credit history- so you don't have to worry about challenge to your employment
- A short sale on its own does not challenge most security clearances
- In some successful short sales it is possible to convince the lender to give up their right to pursuit a deficiency judgement against the homeowner
Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA.
Don't Wait! Get the facts, know your options, and take action!
Call us- We are experienced and have helped many families. Let's talk!
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