Short Sales What is a short sale? As foreclosure rates hit record levels, more sellers are turning to short sales as a way to avoid foreclosure. So, how does it work? In a short sale, the seller arranges with their mortgage lender to accept a price that's less than the amount they owe on the property. As part of this arrangement, the lender typically agrees to forgive the rest of the loan. As a result, the seller doesn't have to go though a foreclosure, the buyer picks up a property at a discount, and the lender avoids taking on the burden of unloading the property.
Short Sales vs. Foreclosures Property is sold, lender accepts proceeds as payment in full vs. Lender takes title and forces the sale of the property. Likely that deficiency judgement will not be filed vs. Lender files deficiency judgement. No foreclosure appears on credit vs. Foreclosure appears on credit. Short sale reflects on credit for 1-1 1/2 years vs. Foreclosure reflects negatively on credit for 5-7 years. FICO scores drop between 75-125 points vs. FICO scores drop between 200-280 points. You stay in your homes until the short sale closes vs. You are evicted from your home. In Palm Beach County, 1 in every 319 homes are in foreclosure. There are 14,793 homes in pre-foreclosure right now! In Broward County, 1 in every 112 homes are in foreclosure. There are 21,304 homes in pre-foreclosure right now! In Dade County, 1 in every 187 homes are in foreclosure. There are 16,595 homes in pre-foreclosure right now!
Timing is everything! If you are already delinquent on your mortgage, you are on the road to foreclosure. Once there, credit scores are ruined and bankruptcy is all but inevitable. We provide fast solutions that can help you save, not just your credit, but your future! Call today!
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