short sales blog
The new trend in the real estate world lately has been the “Short Sale”! While these sales are by no way new they have becoming more popular recently because of the bank easiness in letting them occur. In years past when the economy can do no wrong to get a bank to accept a “short sale” was like pulling teeth.
For those who are not familiar with this process it is simply a process in which the bank takes less than what is owed on the loan/mortgage it originated with the borrower.
The question now arises for you as a home owner. Is the decision for you to see if a short sale could be done in lieu of loosing your home to foreclosure better for your credit? The answer to this seems obvious, ” yes a sale sounds better than a loss to the court house steps”. The truth is both events have a huge blemish on your credit. The misconception is that a short sale is all around better. The fact is it depends on the individual and how soon are they looking to purchase another home.
To be frank the main benefactors who benefit from this transaction is the lending institution that you originated the loan from, and the investor or new home buyer who now purchase the home at the new reduced price. In the sales the new buyer purchases the home at a deeply discounted amount which allows the bank to recover it’s losses quicker and potentially allows you to repair your credit faster. In contrast the foreclosure process is slower, costs exceedingly more and with so many homes going to default the banks want anything but to allow the house to be loss to the foreclosure process.(See why the the government doesn’t want you to loose your home at http://dontlooseyourhome-dlyh.blogspot.com).
This doesn’t mean that a short sale is not a viable solution it just means that it may not be the best solution for your credit. However it may allow you to purchase a new home faster down the line. But if you credit is dinged by credit cards and other consumer debt the road for recovery for the individual may be in the same league as a foreclosure.
For more information on short sales or trying to save your home visit http://dontlooseyourhome-dlyh.blogspot.com
CDPE – Charfen’s Blog: Short Sale Flips