What are the REAL benefits of a short sale?
This is the most asked question I hear, “What are the real benefits of a short sale?” Honestly, it is actually a really good question. So, I put this list together to help sort things out a bit.
What are the Advantages of a short sale?
1.) Less Damaging to Credit Rating: A Foreclosure will severely damage ones credit rating for 7 years, but a Short Sale is less damaging and its effect does not last as long. Many times you can buy a house within 18 to 24 months of a short sale—even right away–in some instances.
2.) Major Banks are Encouraging Short Sales over Foreclosure: Part of the money from the recent $25 billion settlement between state-federal government and banks is set aside for short sales. In fact, Bank of America is offering between $5,000 and $30,000 if you complete a short sale this year.
3.) Dignified Solution: With a Short Sale, we sell your home just like your neighbors have done. It’s a dignified resolution to a tough situation. On the other hand, after a Foreclosure, a Sheriff performs a lock out, the grass turns brown, and a Bank Sales Rep places ‘Bank Foreclosure For Sale’ signs in front of the property for your neighbors to see.
4.) Much Shorter Delay to Renewed Loan Worthiness: We have established an association with a National Credit Restoration firm. This firm has been able to make major improvements to the credit ratings of our past short sale clients, within months. But they have extreme difficulty in making improvements to damaged credit reports resulting from Foreclosure.
5.) “Cash for Cooperation”: Some of the banks we work with are now offering home owners a Cash incentive in order to Cooperate with a short sale, versus allowing the property to be Foreclosed on by the Bank. You can use this money to help with your relocation, such as rent, furnishings and utilities.
Hardship is difficult under any circumstance, but losing a home as a result of foreclosure or bankruptcy can destroy your credit in the long-term and feel like failure in the short-term.
Popular Articles
Bank of America Short Sale Tips
Do you want to know how to navigate the short sale process?
Mortgage debt relief law extended through 2013
What are the REAL benefits of a short sale?
Foreclosure Alternatives: Short Sales and Deeds in Lieu