Short Sale As An Alternative To Foreclosure

Short Sale as an Alternative to Foreclosure

The Benefits Of A Short Sale and Where To Get Help?

619.928.9006 | http://shortorstay.com/thegoodhoodsgroup/ | San Diego Short Sale Agent Team Getting YOU Results

What is a Short Sale? –

A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property. In addition, the property owner cannot afford or chooses not to repay the liens full amounts. Therefore, the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency.

Short Sale vs. Foreclosure – How does it help me? –

Are you delinquent on your mortgage payments and facing foreclosure? Some lenders will agree to accept the proceeds of a short sale and forgive the rest of what you owe them on the mortgage. With foreclosures on the rise on the US, banks are looking for any way they can to minimize their foreclosure losses. Basically, it is much more cost effective for a bank to agree to a short sale rather foreclosure on a home.

Effects of a Short Sale on your credit –

Lenders report to credit bureaus differently, with some not reporting a short sale at all. However, with a foreclosure a FICO score can drop considerably about 200-400 points. Generally, a foreclosure will remain on your credit report in the trade-lines section for 7 years.

Buying again after a Short Sale – 

Depending on if your payments had fallen behind 30 days late and the lender does not require that you pay back the loan; you may buy another home immediately. In other cases you may have to wait 2-3 years. In the case of a foreclosure, it takes 5-7 years to become eligible to buy another home.

Benefits for a Short Sale –

• Retain some dignity in knowing that you sold your home.
• You won’t suffer the social stigma of the “F” word: foreclosure.
• No mortgage payments to make, unless you choose to make them.
• You will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years.
• If your credit report does not reflect a 60-day+ late pay, under Fannie Mae guidelines, you will be eligible to buy another home immediately.

HAFA Short Sale Program –

The Home Affordable Foreclosure Alternatives (HAFA) program is for homeowners who are eligible for the government Home Affordable Modification Program (HAMP), but are not able to secure a permanent loan modification or cannot avoid foreclosure. HAFA provides protection and money to eligible homeowners who decide to do a Short Sale.

Short Sale Help –

If you are considering doing a short sale on your home then it will help to get some FREE advice and find out the details of how a short sale may benefit you based on your individual mortgage and financial situation. Act NOW and call us today at 619.928.9006 or visit our website at http://shortorstay.com/thegoodhoodsgroup/ and get a FREE report of an estimated market value of your home.