Orange, CA Elite Real Estate Office | Agents | CENTURY 21

Short Sale vs. Forclosure: Pros and Cons

Many homeowners are torn at the decision to Short Sale thier homes, here are 8 GREAT reasons to consider a Short Sale.

1. You pay no out of pocket expenses. All short sales are sold as-is, meaning you won't have to bother spending time and money on tedious home repairs. Your lender also pays for all commissions and services on both sides of the transaction, giving you the least hassle possible in moving on to your next home.

2.) Your credit damage is minimized. A short sale will have a recoverable impact of 80-100 points on one’s credit, compared to the devastating effect of 250-350 points a foreclosure has on a credit score.

3.) You can buy another home in approx. two years. Fannie Mae Announcement 8-16 recently set the standard that homeowners who choose to short sale only have to wait 24 months before buying another home. Foreclosure prevents you from owning a home for at least 7 years

4.) You have an assured sense of relief. Short sales in lieu of loan modifications give homeowners a firm new start. The Department of the Treasury just released a study revealing that 55% of homeowners default again within six months of receiving a loan modification.

5.) You save money and pay less taxes, The Mortgage Forgiveness Debt Relief Act of 2007 allows short sale homeowners to not be taxed on the difference between their loan amount and the short sale price. With a foreclosure, you'll receive a 1099 for a home you don't even own.

6.) You have a dignified solution to a difficult problem. A short sale allows you to stay in your home during the negotiation period. A foreclosure can become an embarrassing situation as a bank representative comes by to lock up the doors and windows, change the locks, and put up "bank owned" signs on your property while the local Sheriff is contacted to have you forcibly evicted.

7.) You can have a trust deed sale date delayed. A short sale will cause the lender to Post pone a trust deed sale date.

8.) You'll have an easier time finding a nicer place to rent. If you chose to rent, a foreclosure and/or eviction are red flags for landlords that will make it very difficult for you to find a place to live in the future. However, while a short sale is being negotiated, homeowners have many more options.

We can even help you with credit repair,  find an affordable and suitable rental property  and we will have your ready to buy again in as little as 24 short months!!!

You still have options, but time is running out!

Call Century 21 Elite today, and start getting your financial life back on track!

 

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Orange, CA   -  714.270.7355