Short Sale vs. Foreclosure Facts
Facing foreclosure and unsure if you should try for a short sale? Read on for a list of facts comparing foreclosures to short sales.
- A foreclosure can stay on a credit report for 5-7 years and cause serious ramifications for future lending capability.
- Credit score is affected by the number of missed payments. A short sale is usually recorded as “debt satisfied,” “paid as agreed” or “paid in full.”
- By doing a short sale the mortgage eligibility to purchase another home is often restored in 18 to 24 months.
- IRS and Deficiency Judgments are common after a foreclosure.
- Most short sales enable the homeowner to reduce and eliminate any Deficiency Judgments.
- There are now some short sale programs that allow the seller a moving allowance up to $3000 or more and make partial compensation to lenders for their cooperation.
- The cost of the short sale (real estate commissions, closing fees, etc.) are not paid by the seller.
- Banks are more willing than ever to participate in short sales.
- Most sellers can qualify if they have a legitimate financial hardship.
- Short sales are not as difficult and cumbersome as the media portrays them when handled by a trained professional.
- Short sales are very common and affect millions of Americans across the country.
- There has never been a better time to participate in one of a number of short sale programs now available.
- Short Sales can alleviate a huge financial burden and enable the seller to move back to home ownership much faster.
- Banks aren’t in the real estate business. The last thing a bank wants to do is to foreclose on a property.
- When the bank forecloses, it takes on carrying costs and ultimately sells the property at a loss.
- Lenders will often have different requirements and procedures based on the type of mortgage(s) the short sale candidate currently has.
- By understanding how complicated the process can be and by using proven systems, time can be saved and your success rate dramatically improved.
Contact Brandon today for assistance in avoiding foreclosure and doing a short sale instead.