Short Sale vs Foreclosure
Take Control of Your Future by Choosing a Short Sale over Foreclosure
Nothing makes a person feel more powerless than facing foreclosure on their home. What many people don’t know is that there are other options available. The best place to start is by comparing a short sale vs. foreclosure. A short sale is a great way to avoid foreclosure and shift the balance of power away from the lending institution and into your own hands. When pitting a short sale vs. foreclosure, there is no doubt which option is in your best interest.
Who Controls the Sale?
The first factor to consider is who controls the destiny of your house. If you opt for foreclosure, the lending institution takes control of your house when you fall too far behind on your mortgage payments. They aren’t actually interested in the property they simply want to auction it off to recoup the remaining balance on your loan. In New York and New Jersey a short sale gives you, the homeowner, the ability to sell the home before it goes into foreclosure.
You Can Stop Foreclosure with a Short Sale
A short sale is used when the borrower is no longer able to make the agreed upon mortgage payments and owes more than the home is worth. This is unfortunately a common situation especially following a dramatic drop in home value or a result of falling too far behind on monthly payments. It is important to understand that during the short sale process, the lender must agree to the amount the home is sold for before completing the sale.
Who Controls Your Financial Future?
One of the biggest benefits of opting for a short sale instead of foreclosure is the impact it has on your financial future. By choosing a short sale your credit score damage is significantly less in comparison to a foreclosure. In fact, following a short sale when the lender reports the debt reduction to credit reporting agencies, this speeds up your ability to get a loan in the future. You are often able to buy another house right away. The damage to credit from being foreclosed on lasts 7-10 years.
A Foreclosure Can Destroy Your Financial Future in Several Ways
If you go into foreclosure, your credit score can drop 200 to 400 points and it will remain on your credit history for seven years. Any time you try to get a loan you will have to report your foreclosure on the application. Additionally, there are strict requirements you must meet to buy another house within five years.
Where to Get Help?
When going through the foreclosure process there is very little help available. It is up to the lending institution to file all of the paperwork and take control of your home. You have zero control throughout this process. There are some assistance resources available during the foreclosure process however they often have a limited effectiveness.
Get Help from a Short Sale Real Estate Specialist
To begin the short sale process in NY it is important to get help from a short sale expert. At ForeclosureHelp.nyc, we can help expedite the short sale process because we have an extensive network of professional negotiators that are experienced in dealing with banks and not only can we help you navigate the short sale process but can also help educate lenders as to geo-specific pros and cons of particular properties so that they accept buyer offers and close the deal.
There’s really no comparison when it comes to short sale vs. foreclosure. A short sale gives you more control over the entire process including who your house is sold to, what impact it has on your credit score, and when you are eligible to buy another home.