A short sale is considered to be less than the balance owed on the loan to consummate a sale of the property and stop foreclosure. By taking this avenue, he wants to get more of the loan balance and less. The homeowner wants to maintain a better level of credit. Certain criteria must be qualified for a short sale. Provision of economic hardship & evidence of zero equity in the property must be submitted by the homeowner to the mortgage lender. It is an extremely complex transaction, so be sure to select an experienced professional who is very knowledgeable in this field.
6 Differences Between a Short Sale and a Foreclosure
1st Credit Score
A short sale lowers your credit as little as 50 points for 12 to 18 months. While Forecasting lowers it at a minimum of 250 points for three years or longer. Without the ability to repair your credit after a foreclosure, it may affect your ability to gain.
2. Credit History
A short sale is reported in full and does not show on a credit report. A foreclosure wants to be on your credit history for 10 years or more as public records.
3. Waiting period to buy another home
If you can not complete your foreclosure, you can get reasonable interest rates within two years. With a foreclosure, you may wait 24-72 months.
4. Cost & Length of Time
Short sales are typically faster and less costly than foreclosure and it saves you a lot of embarrassment and shame that is associated with foreclosure. Foreclosure puts you at risk of being sued by your lender, dragging out this painful experience longer. Foreclosure so causes the homes of your neighbor to go down in value.
5. Future loans
With most lenders, a short sale does not require a standard loan application, while a foreclosure wants, therefore, skyrocketing your interest rates. Know that you may experience this reminder every time you need a loan for the rest of your life.
6. Sale of property
A short sale is a consent agreement between the seller and the seller.
Many unfortunate homeowners find themselves in a dilemma due to a poor local and nationwide real estate market or financial hardship. Homeowners are unable to refinance or modify their mortgage loan. Restore your dignity and peace of mind. Enjoy not only forgiveness, but some banks offer cash or other compensation to the homeowners who cooperate in this short sale process. Real estate firms that specialize in the types of transactions they need to make their money on. Time is of the essence so call an agency. Make the best decision of your life and stop your foreclosure proceedings.Immobilienmakler Heidelberg Makler Heidelberg
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Source by Ivy Brooks