Real Estate Short Sales Are Good compared to that of a Foreclosure in most cases.
Below you will find why short sales are good and why a foreclosure is bad.
Foreclosures Are Bad For A Variety Of Reasons
You see if a borrower is in default and they get foreclosed on there are three main bad things that can happen.
- The foreclosure is bad on your credit reporting which will cause you to pay thousands more in interest on everything including future mortgages, car loans and credit cards.
- The Foreclosure on your credit will take you longer to purchase another house. Just because you were or are in a bad position now, doesn’t mean you shouldn’t buy another house which is why short sales are good.
- In many cases the lender upon a foreclosure will try to put a Deficiency judgement against you where they will try to collect all monies lost in the foreclosure transaction. This could include the upside down portion, closing costs and attorney fees.
Short Sales Are Good For A Variety Of Reasons
Short sales are good for so many reasons over a foreclosure. Let’s go into detail on those.
- Short sales are good as it could allow you to buy another home sooner than later. We even got people into another home only after 18 months from their short sale close date.
- Short sales are just better on your credit than a foreclosure. They key however, is when you become delinquent, get the short sale process rolling as fast as possible. Because every month you are delinquent, it negatively affects your credit reporting.
- Short sales are good as the bank may waive their deficiency judgement against you. This will be stated in the short sale approval letter with all the terms and conditions.
- Short sales are good as they give you more control and predictability. What do I mean? Well once you go through the short sale process and get the short sale approval, it kind of acts like a normal real estate transaction. The buyer will usually have 30-45 days to transact, you will know your close date and also prepare to move out. In some cases, you might be able to get a few bucks in your pocket from your lender for moving costs. Assuming you are financially insolvent. Be sure you get with a Short Sale Expert in your area who can negotiate this on your behalf. ** Must be included on the settlement statement.
Listing Real Estate Short Sales
If you are a real estate agent who is interested in helping the public to transact short sales, be sure to check out our Short Sale Expert Course.