Programs & Options
Availability of programs and options are based on the following criteria:
Severity of financial hardship
Number of days late on mortgage
State foreclosure process
Bank and Investor guidelines
Homeowner’s determination to act sooner than later
A Short Sale will affect your credit but not as detrimental as a Foreclosure will. A Foreclosure comes with a Final Judgment which remains on your credit report for 7 years. A Short Sale usually is reported as a “settled” account on your credit report. By maintaining prompt payments on other credit lines and diligently working on improving your credit score, you may be able to rebound to a decent credit score within a couple of years.
Your Personal Well Being
Experiencing a Foreclosure can be emotionally disheartening. The feeling of losing your home to the bank or possible eviction by a bank can lead to many sleepless nights or even tension within your family. Living with the effects of the Final Judgement or Foreclosure on your credit report for 7 years will require possible explanations whenever you apply for credit. A Foreclosure can be mentally devastating. A Short Sale, handled by a Short Sale Realtor, is the sale of your property just like any other real estate transaction except it takes much longer due to the negotiated settlement process required with the bank. You do not get evicted from your home. You sell your home with a pre-determined closing date just like any other real estate transaction. Most importantly, there is no need for any explanations why you lost your home in a Foreclosure!
You Can Buy Another Home Within 2 to 3 Years
If you do a Short Sale and as long as you maintain yourself current on all of your credit obligations, you will be able to purchase another home within a couple of years. This housing crisis will still take some time to recover if not recover. Focus on re-establishing your credit score and you will be able to take advantage of today’s rock bottom real estate prices. Home prices should remain this low for the next few years.