In years past, you’ve probably heard a few stories about people losing their homes to foreclosure. You might have also learned about someone who completed a short sale on their home. We usually hear these different stories and facts from our neighbors, co-workers and friends. Even though we’ve seen a significant improvement within the real estate industry, there continues to be numerous changes when it comes dealing with distressed properties. New upcoming rules and regulations continue to leave homeowners with more questions than ever.
How long will a foreclosure be on your record? Is it too late for you to start a short sale? Are you required to miss a number of mortgage payments? When can you purchase another home?
These are great questions that I get from clients all the time. This section will go over the differences between a short sale and a foreclosure, as well as key information you need to know in order to move forward in the right direction.
A foreclosure is the in-depth legal process used when the bank or lender takes back possession of a home where a number of mortgage payments were missed on behalf of the borrower.
A short sale is the process used by homeowners to sell their home for less than the amount required to pay back the full principal balance of the mortgage loans on the property.
It is almost always in your best interest to complete a short sale over a foreclosure. A short sale is less damaging to your credit score and will often be reported as “paid” or “settled” on your credit bureau report. Most often the bank or lender will rule in your favor by completely forgiving the remainder of the debt owed on the mortgage. In some cases homeowners who participate in a short sale will also be eligible for cash back incentives from the bank once the short sale closes. A short sale can really put you in the best position for future financial success.
You want to avoid a foreclosure by any means necessary. A foreclosure can severely damage your credit score and remain as a public record for over ten years. After a foreclosure, the bank can also pursue you for any amounts owed which are related to the deficiency of the mortgage loan. Having a foreclosure on your record may cause serious financial consequences for you and your family in the long run.
It is never too late to talk to someone about getting help with a short sale. A short sale transaction is done at no cost to you. Listing charges are paid directly by your lender. As a REALTOR® holding the advanced designation of a CDPE – Certified Distressed Property Expert, I’ve been able to effectively help many clients through the entire process. I will be fully committed to serving your interests by handling your situation with full effort and care. The main goal is to create an easy road to financial recovery for you and your family.
Right now is the best time to reach out whether you are ready to start the process or just looking for a few answers.
For a quick look at the steps involved in a short sale, please click on my “Short Sale Process” tab. You can also e-mail me at Jasmine@SeeVegasHomes.com or call or text me directly at 702.417.0884.
I look forward to helping you out!