Which is Better: A Short Sale or a Foreclosure?
Would a short sale be really better than a foreclosure?
Yes, and there’s no doubt about it.
For the longest time, many homeowners have gotten so upset and disappointed with getting by financially and not having enough money to cover expenses that they end up just letting their home go back to the bank as a foreclosure instead of short selling their home. It’s really sad that they have to let their homes go after working so hard to get it.
There is so much stress involved when a homeowner has to go through with facing a foreclosure; Most of the time people just don’t weigh the pro’s and con’s of going through a foreclosure, they just end up letting their homes go.
That’s why I have to highlight some points on why it would be more beneficial for a homeowner to go with a short sale instead of going through a foreclosure.
1. A foreclosure destroys your credit.
A foreclosure can drop your credit score as much as 300 to 400 points. I would like you to think, and think hard about this. Imagine how you will be able to ever buy anything if you have a credit score in the 400's. You will have a hard time buying things that you may really need, like a car. And services that require a credit check will also be affected – electricity, utilities, cell phones, etc. Think of how inconvenient that would be for you.
2. Employment.
Every time you apply for a job, your credit will most likely be checked. That is because this is one way for your employer to determine your character. When they see a foreclosure on your record, it will have a negative impact on how they view your character. When there are options to avoid foreclosure, there's absolutely no reason to have one on your record.
3. Buying a Home
Having a foreclosure on your record takes several years to recover from. It will stay on your credit report for as much as 10 years. You won't be able to buy a home again for at least 5-7 years. Even then, you will be paying a higher rate which makes it much more expensive to buy a home. On the other hand, if you short sale your home, the only negative thing you will have on your credit report is a late payment. After a successful short sale, your credit report will show account "settled". With good credit repair services, this can be cleaned up in no time.
Please bear in mind that these reasons are just a few of why you would want to avoid a foreclosure.
There is always a better option: if you are a Westside Los Angeles homeowner who's struggling to pay your mortgage, do not allow your home to be foreclosed.
Contact Dana Ehrlich - Keller Williams Realty Santa Monica 2701 Ocean Park Blvd. Ste 140 Santa Monica, CA 90405. (310) 392-0096. [email protected].
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Get your life back, avoid foreclosure. Learn more on how you can do this.
This article can originally be found at: Which is Better: A Short Sale or a Foreclosure?
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