There are so many benefits to doing a short sale compared to a foreclosed on. For starters, when you go through a successful short sale; there is minimal impact on your credit specially since you had no late payments on reported to the credit agencies.
In fact, if you take part in a HAFA Short Sale, your loan will be reported a “Paid in Full” according go to latest HAFA guidelines.
In fact, we have lenders who will pre-approve a Short Sale owner ONE day after a successful close of a Short Sale Listing. This means that you can strategically remove yourself from an upside down home to a one you can afford and continue to build equity. Alternatively, if you home is foreclosed the impact on your credit history will be severe and will last for at least 7 years.
Given the popularity of Short Sales most lenders are now offering homeowners relocation assistance to speed up the short sale listing, which means they will sometimes pay you to move. Contrast that with the harsh reality of a foreclosure process where you will be given a 2 week notice to move out. Short Sales Listing is a much more humane and elegant way to exist a difficult financial situation while minimizing the damage to your credit history.
Don’t expect that kind of treatment with a foreclosure proceeding. Contact Us to see if you qualify for a Short Sale.