Short Sale vs. Foreclosure

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 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.

Short Sale vs. Foreclosure – 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 are actually interested in the property; they simply want to auction it off to recoup the remaining balance on your loan.
In Brooklyn and across the county 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 an unfortunately common situation following the dramatic drop in home value over the past several years.
It is important to note that during the short sale process, the lender must agree to the amount the home is sold for before completing the sale.

Short Sale vs. Foreclosure – 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 will only drop by 50 to 150 points which pales in comparison to what a foreclosure does.
Plus, the lender can report the debt reduction to credit reporting agencies which will make it easier to get a loan in the future.
Unlike a foreclosure, you are immediately eligible to purchase another home.

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.

Short Sale vs. Foreclosure – Where to Get Help?

When going through the foreclosure process there is very little help to be had. 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 being the process of a short sale NY it is important to get help from a short sale expert.
At Prime Homes NY, we can help expedite the short sale process because we buy any house.
We have gained a lot of experience dealing with lending institutions.
Not only can we help you navigate the short sale process, but can also help convince lenders to accept the offer.

There really isn’t a 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.

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