Why Is a Short Sale Better Than a Foreclosure?

Why Is a Short Sale Better Than a Foreclosure?

30A luxury home owners who have lost the capacity to continue making their monthly mortgage payments dread one thing, and that is losing their home to foreclosure.

There is a better alternative to foreclosure, and that is doing a short sale.

Short sales offer distressed homeowners of 30A luxury homes more advantages over foreclosure. Here are some of the benefits of a short sale:

1. Faster
Once you have an executed purchase and sale agreement a short sale only takes, on average, 90 - 120 days to complete as compared to a foreclosure. In the State of Florida, it could take over a year.

2. Less impact on credit score
A short sale can negatively affect your credit score but its impact is not as damaging and long lasting as a foreclosure.

3. Relocation incentives
Some banks offer relocation incentives for qualified homeowners who sell their home as a short sale.

4. A short sale allows you to negotiate with the bank
With all short sales there is a deficiency (amount you owe on your mortgage vs. what the home is selling for). You could be liable for that amount. In many situations the bank will waive the deficiency. If you lose your home to foreclosure, there is no way of negotiating with the bank and you may end up paying thousands of dollars.

5. Shorter waiting period to buy a new home
Homeowners who have gone through a short sale generally need to wait only 2 years before they could qualify for a new home loan (or sometimes even less if they qualify for certain government programs). The waiting time to buy a new home after foreclosure is 7 years.

6. Less emotional stress
Short sales help the distressed homeowner avoid the stigma and emotional stress associated with foreclosure proceedings.

If you are convinced that selling your as a short sale is the best option for you, talk to an experienced short sale agent who can represent you and help you through the complex process of short sales.

If you want to know more about short sales or need the help of a short sale expert, Call me, Debbie James at 850-450-2000. Let me help you avoid foreclosure by guiding you through the short sales process. Visit my website at www.30ALuxuryHomes.com

Debbie James
Broker Associate
Somers & Company
Accredited Luxury Home Specialist