Image via Wikipedia
In a standard market, a sale short of what is owed the lender is hardly a desirable outcome for the seller. But in today’s terms with many homes being worth less that what is owed, it will often be the best option many underwater sellers can expect. In most cases it is a far better option than foreclosing, which can drop a person’s credit score by as much as 200 points and can linger on their credit history for as many as seven years. It would be very difficult to secure a new loan for a future home purchase.
Foreclosures carry other weighty problems and future aspects of many things such as security clearance for certain jobs, etc.
While short sales are often the best option for some homeowners, they are by no means the only one. While some banks are still slow to accept measures like a loan modification, if what the homeowner wants is to stay in that home- then they should make every effort to make that possible. Always talk to your bank first; a lot of times the bank will tell them what to do. You should never avoid your bank.
There have been numerous cases where homeowners who went through foreclosure could have done a short sale instead – if only they knew about them. Education is an important factor for homeowners as to what options are available.
Related Articles
- Short Sale FAQs (shortsalehelpnow.wordpress.com)
- Mortgage Insurance and Short Sales (twincitiesrealestateexpert.wordpress.com)
- Short Sale Process in Elk Grove, CA (modeanddurham.wordpress.com)
- Sacramento Short Sale closed with happy seller! (modeanddurham.wordpress.com)
