Last week we started discussing the benefits of short sale versus foreclosure. If you are still undecided about which is the better option for your home and your unique situation, take a moment to review these next points showing the benefits of short sale versus foreclosure.
Loan Applications - Whether you are buying your next home or a car, the majority of loan applications will ask if you have ever had a foreclosure. Previous foreclosures can make getting any type of loan more difficult. Loan applications do not ask applicants if they have had a short sale, and short sales will not appear on a credit history report.
Deficiency Amount and Judgement - The deficiency amount is the difference in the amount of the loan and the amount the lender was able to acquire in the selling of your home. In the majority of cases, a short sale generates a higher sales price and leaves less of a deficiency amount on the home. Due to the lesser amount of the deficiency, many mortgage companies forgive the debt and do not require repayment.
Increased Home Values - Many people are unaware that foreclosure reduces the home value of homes in the neighborhood. Selecting to sell your home through a short sale not only benefits you as the seller, but benefits your neighborhood as well.
Less Stress and More Control - Once a foreclosure begins, the home owner has limited control over the foreclosure, and this makes the stressful situation feel even worse. Although a short sale is not stress or risk free, it does provide the home owner with a sense of control by providing the home owner with more options.
The decision to sell your home as a short sale or foreclose on your home is a big decision. I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.