Short Sale vs Foreclosure

FinanceMortgage & Debt

  • Author Blaine Washburn
  • Published March 3, 2010
  • Word count 388

Nearly all of us know someone who has fallen behind on their home mortgage payment for one reason or another. It is happening to good people every day. When that happens we must ask ourselves "should I try to short sale my property or should I allow it to foreclose?" . In reality, there are many different ways to stop foreclosure. You can find a free report on different strategies to stop foreclosure at www.StopForeclusreUT.com. However, a Short Sale is a very popular strategy, and rightfully so.

In most cases, a short sale is a much better solution than a foreclosure. The reason is that a successful short sale will report as a satisfied debt on your credit report and is much less damaging. Although a short sale and a foreclosure are both damaging to your credit, the difference is huge. A foreclosure will likely damage your credit by as much as 300 points, and make it difficult for you to buy a home for as much as 7 years. If you short sale your home instead, your credit damage is much less severe, and could create the opportunity for you to buy a home in as quickly as one to two years.

In addition, the foreclosure process is very expensive, and legal fees in addition to penalties could add tens of thousands of dollars to your debt. The additional debt increases your potential liability of having the bank come after you with a deficiency judgment to get more money out of you after the foreclosure is complete. Your bank will be much happier with you if you help them avoid the costs of foreclosure with a short sale. In addition, your bank is much more likely to forgive remaining debt if you successfully short sale your property.

Seek a qualified short sale professional to assist you with your short sale. If you have questions or would like more information regarding short sales or stopping foreclosure, visit www.StopForeclosureUT.com.

Need a short sale agent in Utah? Visit www.StopForeclosureUT.com.

DISCLAIMER: We strive to offer up-to-date, accurate, and helpful real estate information for your convenience. However, this information is for informational purposes only and in no way are we offering legal advice. For legal advice, we recommend you consult a real estate attorney or your real estate professional.

Need a short sale agent in Utah? Visit www.StopForeclosureUT.com.

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