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Short sales and foreclosures are two actions taken by people who are having trouble paying their mortgage. Each has many disadvantages and advantages.
Short Sale
Short sales is when a person sells her home at a value below the amount remaining on the loan. This is often done because the lender no longer feels like pressuring the client for repayment.
Foreclosure
A foreclosure is a court-ordered termination of a mortgage, forcing the occupants of the property to vacate on a certain date.
Advantages of Short Sale
A short sale is often preferred over a foreclosure as it stays on a person's credit report for a shorter period and increases a person's chance of buying a home again in the future.
Any Option is Better than Foreclosure
A foreclosure should be seen as the absolute last resort because a foreclosure can ruin your credit score, affecting your ability to get any loans and even jobs for up to 10 years.
Consider Short Sale
If possible, a person should accept a short sale of his estate if the lender allows it as it leaves you with more options in the future.
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