Here’s why homeowners are better off doing a short sale instead of a foreclosure.
How can a short sale help you avoid foreclosure?
A short sale is a process where the bank allows the homeowner to pay less than their current mortgage to sell their home. This benefits both sides: The bank saves money on legal fees and the homeowner doesn’t have to go through foreclosure.
Opting for a short sale and avoiding foreclosure carries three big advantages:
1. You won’t have a foreclosure on your record for seven years. The only thing that will show up on your credit is an account settled for less.
2. Your credit recovers much faster. With a year or so of good payment history, you’ll be able to attain your previous credit score.
3. The bank provides relocation assistance. They like short sales, and they’ll encourage you to go through with them. They’ll offer you $3,000 to $10,000 just to relocate and sell your property before it enters foreclosure.
That being said, a short sale is a complicated process involving many loopholes you need to be aware of to do it successfully. If you’re facing foreclosure or know someone who could benefit from a short sale, don’t hesitate to reach out to me. I’m here to help.