The Benefits to a Short Sale over a Foreclosure.
Now why would I say that you ask? Well the alternative to short sale is a foreclosure. Whereas a short sale will negatively impact
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your credit for about 3 years it is far longer with a foreclosure depending upon your initial credit score in this process. So re-establishing your credit quicker is a main benefit to a short sale transaction. Besides being able to establish and rebuild your credit right away.
As the seller, a foreclosure of your home and the lender taking it back will mean you will need to wait about several years before you can regain a good credit standing. A foreclosure negatively impacts your credit for a similar period of time as a short sale.
But a foreclosure will impact the ability to buy another home and any borrowing you may want to do (credit card, auto loan, new job) as well as increase your insurance rates. Plus the Bank can come after you for monies owed and not recovered by the foreclosure home sale years hence (always talk to an accountant and a lawyer on your risks here). There are benefits of a short sale over a foreclosure.
Understand the ‘best’ short sales are the ones that are backed by private investors and not by the government. This is when your lender ‘sells’ the mortgage to an investor(s) and does not keep it in their portfolio. Behind nearly all the lenders are investors (public are government and private are investor groups) on mortgage loans.
These investors have an important say in what happens with your short sale and how much of the loan they will forgive. It is the not the lender who financed your loan that has the final settlement say.
How long a short sale takes to close, what monies you must bring to the closing table as a seller and what the agreed upon terms are to you the borrower depend on the investors too. Waiver of deficiency judgment is also an important part of the negotiated short sale process. Know that the final bank short sale approval letter is your ‘brass ring’ to a less financially burdensome future when negotiated right by your North Kingstown short sale agents.
It is important to talk with a real estate professional about this short sale process and not wait if you are behind on your mortgage and have a hardship. Be pro-active and call me now to see how I might help you through this process. It does not cost you anything to put your home on the market as a short sale. Pick up the phone and call me Today at 401-529-7849.
The Benefits to a Short Sale over a Foreclosure.
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Ginny Lacey Gorman is a member of short sale superstars. Visit my RI Real Estate web site to learn more about the short sale process. We work hard for our clients in making the short sale happen successfully. My team can help you through the short sale process. If you are under water on your mortgage, please call me to find out your options at 401-529-7849.
