Advantages of a Short Sale
The goal of a Short Sale is to help you avoid foreclosure if you are no longer able to remain in your home. In the Short Sale process, you sell your home and settle your mortgage debt for less than the amount that you owe.
Advantages of a Short Sale:
- May stop and/or postpone the foreclosure process
- Avoid having a foreclosure on your credit report
- No mortgage payments to make, unless you choose to make them.
- Avoid an otherwise embarrassing and stressful situation
- Lender typically pays all the closing costs and broker commissions
- Debt relief from the lender on the short payoff, in most cases
- You will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years.
- If your credit report does not reflect a 60-day+ late pay, under Fannie Mae guidelines, you will be eligible to buy another home immediately.
- May avoid the tax consequences and a deficiency judgment
- It can save you money and give you more control
- Being responsible and doing the right thing
