Short Sale vs Foreclosure
When mortgage payments become too expensive and you cannot make your payment, there are two options to reconcile the situation. Most people initially think of foreclosure, but this can lead to many more issues down the road and have drastic impacts on a homeowner’s creditworthiness. That’s why it’s important to avoid foreclosure and instead chose the alternate route of short selling your home. The short-sale specialists at EZ Short Sales can teach you how to short sell your home to prevent foreclosure and continue with your life.
A short sale is almost identical to selling your home when payments are up to date. You choose a real estate agent, make a deal with an interested buyer, and work together to get the house sold. The only difference is that if the homeowner is still behind on their payments, a short-sale specialist works with the lender to accept the price of the short sale before the deal is finalized.
Why Foreclosure Prevention is a Must
A foreclosure has a significant impact on a person’s credit report, and it can take years to regain an acceptable credit score. When your house is foreclosed, it also directly impacts your ability to buy another property, as most lenders will not approve you for financing due to your missed payments.
Don’t let a bad situation get worse. When you choose to short sell your home rather than go through foreclosure, your mortgage payments are no longer an insurmountable obstacle. As an extra bonus, you are not required to disclose a short sale when looking to buy another property or secure another loan. The same cannot be said after going through a foreclosure.
Foreclosure prevention gives you the financial freedom you deserve so you can get back on track. Here are just some of the foreclosure consequences you may encounter:
- Your credit score can be impacted by at least 200 points
- It can remain on your public record for seven years
- It is nearly impossible to secure another loan
- Your lender may sue you for the outstanding mortgage amount
- Your tax liability can increase
- Your professional profile can be hurt by poor credit
Avoid these foreclosure penalties by partnering with a short-sale negotiator at EZ Short Sales.
How a Short Sale Can Solve Your Problems
If you are facing foreclosure or are overwhelmed with your mortgage, engaging in a short sale is the permanent solution to being upside down on your mortgage payment. We don’t charge you for our short-sale services to ensure you are not burdened with even more costs. Consider the benefits you will gain by choosing to short sell your home and avoid foreclosure, including opportunities to:
- Sell your house without a damaging foreclosure on your record
- Avoid the foreclosure penalties that can ruin your financial wellbeing
- Begin financial recovery during the short sale-process
- Avoid long-last impacts on your credit score
- Save thousands of dollars over the life of the loan
- Reverse your negative equity position
Move Forward with a Short Sale
We understand that making a decision to go ahead with a short sale is often difficult and confusing. That’s why our team of short-sale negotiators is eager to walk you through the process step-by-step to ensure you fully understand the benefits of a short sale. We have the ability, experience, and customer service to advocate for your financial wellbeing throughout the process of a short sale.
We know how banks and lenders operate, making us the most qualified short-sale company to give you the service and results you deserve. Contact us today to begin your short sale with a free home evaluation.
Short Sale on Your Home
There are various things you can do to avoid foreclosure on your home, including contacting the lender as soon as you realize you have a problem making your monthly payments and learning your mortgage rights. However, it will be a challenge to prevent foreclosure without meeting your payment obligations. In most cases, the solution revolves around finding a way to pay the required monthly payments or getting freed from all legal obligations by transferring ownership or selling equity.
A short sale is another popular financial option for those struggling with mortgage payments but want to avoid foreclosure. In the next sections, we briefly review how you can short sale to avoid foreclosure on your home, including the benefits of a short sale and crucial things you should know.
Is It Advisable to Short Sale to Avoid Foreclosure?
When you are unable to make payments for your mortgage, it is essential to find other sources of income and fulfill your obligation or risk losing possession of the home. You can also arrange for a short sale on your home, which happens when the areas you have are above the current market price for your home. For instance, if you owe a mortgage lender $350,000 and your home is worth $300,000 you are $50,000 short. A short sale is one way to prevent foreclosure, but you must speak to the mortgage lender and find out if they accept the arrangement. A short sale takes much longer than a foreclosure, and it may be several months before you close. However, once a short sale is closed, you are relieved from all obligations pertaining to the property.
How to Avoid Foreclosure With Bad Credit
The main advantage of a short sale over a foreclosure is the impact on your credit score. A foreclosure is a bad record on your credit and lasts up to seven years. It won’t be easy to qualify for mortgages and other loan products with a foreclosure record on your credit history. The lender may also still sue you for the outstanding loan amount and any interests, which will only hurt your financial wellbeing. If you already have bad credit, foreclosure can make it almost impossible to recover.
On the other hand, a short sale allows you to sell the home without the adverse impacts of foreclosure. You will instantly reverse the negative equity position, avoid foreclosure penalties, and save more on the lifespan of the loan. That’s why you should rely on a short sale to avoid foreclosure.
One More Step You Should Make to Avoid Foreclosure
Learning how to avoid foreclosure with bad credit is essential and involves understanding existing options. A short sale will relieve you from any further responsibilities without hurting your financial future. However, before you arrange for a short sale on your home, it is essential to do one crucial thing:
Hire a Foreclosure Defense Attorney
A foreclosure defense attorney will help you understand your mortgage rights and the possibilities around your predicament. For instance, rental property financing can help lower interest rates and monthly payments, eliminating the need for a short sale of the property. An experienced attorney will also ensure the mortgage lender follows the legal frameworks and help to negotiate the best deals.
Are you looking to avoid foreclosure on your home but have no way of refinancing your mortgage or paying the dues? EZ Short Sales has helped many homeowners sell their property with ease. We serve clients in New York, Pennsylvania, and Florida and have profound knowledge of what it takes to avoid foreclosure and its adverse effects on your credit. We can buy your home equity or facilitate a short sale so you can move on to the next phase without worrying about the home. Contact us today for more information about how you can short sale to avoid foreclosure.