Short sale vs. Foreclosure

November 29th, 2010

Erica Homes

Real Estate and Banking

Compare Short Sale vs. Foreclosure

Should You Choose a Short Sale Over a Foreclosure?

One of our clients asked us:

“My husband and I have been making our mortgage payments every month even though our home is underwater. We owe a lot more than our home is worth. Now, my husband has taken a lower paying job. We’re thinking about walking away from our home and letting it go to foreclosure, but heard that we may qualify for a short sale. Which is better for us? A short sale or a foreclosure?”

Short Sale Benefits

Here are a few benefits for doing a short sale that may not have occurred to you:

Buying Again After a Short Sale

If your payments have never fallen

behind 30 days late and the lender does not

require that you pay back the loan, Fannie Mae guidelines may allow

you to buy another home immediately. The wait for an FHA loan

is 3 years. If your payments are in arrears yet a short sale is

granted by your lender, you may qualify to buy another home

with a Fannie-Mae backed mortgage within two years,

regardless of whether the home is your primary residence

provided that you do not get other derogatory credit that may

lower your credit score.

Buying or selling in the Carolinas?

Erica Homes, LLC

Short sale vs. Foreclosure

Erica Homes, LLC