Do you still owe more on your Campbell home than it’s value?! One alternative to avoid a foreclosure is Short Sale for your home.
One of Short Sale benefits is that your Campbell home loan will be reported as “Paid or Satisfied” to credit agencies. In addition, most lenders offer Relocation Expenses as part of Short Sale negotiations to motivate owners to vacate their property. Some of the major banks are providing large sums for relocation. In fact, Chase and Bank of America are offering some home owners as much as $30,000 for relocation.
These relocation incentives are very timely, specially since the tax forgiveness of these relocation funds might not be available in 2014. Another feature of Short Sale is that in most cases there is no Cost to the Seller for the Short Sale and majority of the costs are covered by the lenders.
Foreclosures however, will have a lasting impact on your credit score. Foreclosure will cause severe drop in your credit score and substantial loss in their ability to borrow money in the future. In fact, results of the Foreclosures appear on the owners credits history for up to 7 long years and more depending on the credit agency!
Other alternatives to Foreclosures are Deed in Lieu and Bankruptcy and they will be covered under different blogs. However, you should contact an experienced Short Sale agent to better understand all your options.