Are you struggling to make mortgage payments and fear you may lose your home to foreclosure? If so, you may have another option: a short sale. A short sale is when you sell your property for less than the outstanding mortgage balance owed. While it can be a difficult decision to make, choosing a short sale over foreclosure can offer several benefits of
- Avoid foreclosure on your credit report
One of the most significant advantages of a short sale over foreclosure is that it will have less of an impact on your credit score. Foreclosure can lower your credit score by 200 to 300 points, making it difficult to secure loans or credit in the future. A short sale, on the other hand, typically only lowers your credit score by 50 to 100 points.
- Protect your financial future
When you choose a short sale, you can avoid a foreclosure, which can remain on your credit report for up to seven years. This can make it challenging to secure loans, rent an apartment, or even get a job in some cases. Choosing a short sale can help protect your financial future and make it easier for you to move forward.
financial future and make it easier for you to move forward.
- Get rid of mortgage debt
In a short sale, the lender typically agrees to forgive the remaining mortgage balance owed, so you won’t be stuck with any lingering debt. With foreclosure, you could be liable for the deficiency, which is the difference between what you owe on your mortgage and what the lender is able to recover through the sale of your property. This deficiency could haunt you for years to come and even result in wage garnishment or other legal action.
- Avoid the stress of foreclosure
Foreclosure is a stressful process that can take months or even years to resolve. During this time, you may have to deal with constant phone calls from lenders, potential buyers, and even your neighbors. Choosing a short sale can help you avoid this stress and uncertainty by allowing you to sell your property quickly and move on with your life.
5. Preserve your dignity:
Foreclosure can be embarrassing and emotionally devastating. It can be challenging to face the fact that you are losing your home, and the process can be a very public one. A short sale allows you to maintain your dignity and privacy while still addressing your financial difficulties.
In conclusion, a short sale can be a beneficial alternative to foreclosure. Not only can it help you avoid the negative impact on your credit score, but it can also protect your financial future, get rid of mortgage debt, and preserve your dignity. If you’re struggling to make mortgage payments, consider speaking with a real estate agent or attorney who can help you explore your options and make the best decision for your situation. We’ve helped a ton of people who have chosen a short sale over foreclosure. If you are in need of assistance, please don’t hesitate to contact The Property Guys at 703-679-8238 or visit us on our website at ThePropertyGuysDC.com