[ad_1]
A short sale occurs when the mortgage lender agrees to a settlement with a discounted payment that is less than the amount owed on the loan in order to complete the sale of the property and prevent foreclosure. Taking this opportunity, will help the lender get a higher loan balance and less hefty fees as compared to the foreclosure process. The homeowner will also maintain a better level of credit. Certain criteria must be met in order to qualify for a short sale. An economic hardship provision and proof of zero equity in the property must be submitted by the homeowner to the mortgage lender. This is an extremely complex transaction, so be sure to choose an experienced professional who is very knowledgeable in this area.
6 Differences Between Short Sale and Foreclosure
1. Credit Score
A short sale reduces your credit by up to 50 points for 12 to 18 months. While foreclosure for three years or more reduces it by at least 250 points. Without the ability to repair your credit after foreclosure, it may affect your ability to be gainfully employed or find housing.
2. Credit History
A short sale is reported as paid in full and does not appear on the credit report. Your credit history will be foreclosed on for 10 years or more as a matter of public record.
3. Waiting period to buy a second home
If you can prevent your foreclosure, you can get the loan within two years at reasonable interest rates. With foreclosure, you can wait 24-72 months.
4. Cost and length of time
Short sales are usually faster and less expensive than foreclosures and save you the embarrassment and shame associated with foreclosures. Foreclosure puts you at risk of being sued by your lender, prolonging this painful experience. Foreclosures also reduce the value of your neighbors’ homes.
5. Future Loan
With most lenders, a short sale is not required to be declared on a standard loan application, whereas a foreclosure, therefore, causes your interest rates to skyrocket. Know that you may experience this reminder whenever you need a loan for the rest of your life.
6. Sale of assets
A short sale is an agreed upon agreement between the seller and the lender, while a foreclosure is a forced action on the seller by the lender.
Due to a poor real estate market or financial hardship locally and nationwide, many unfortunate homeowners find themselves in a dilemma. Homeowners are unable to refinance or modify their mortgage loan. Restore your dignity and peace of mind. Not only do they enjoy forgiveness, but some banks offer cash or other compensation to homeowners who cooperate with this short sale process. Real estate firms that specialize in these types of transactions have the necessary experience and solutions to eliminate your mortgage debt problems and provide you with the free lifestyle that you have been waiting for. Time is of the essence so call an agency right away to get your questions answered. Make the best decision of your life and close your foreclosure proceedings.
[ad_2]
