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Tuesday, November 27, 2012

Why Bother? Short Sale, Foreclosure…either way my credit is ruined!

Short sale, foreclosure…either way my credit is ruined   Why bother with the hassle of a short sale?

I am not an attorney so this is not to be considered legal advice, understand?

While either the short sale or foreclosure process can “ruin” one's credit it is only temporary.  Think long term here.... although it is for years.

The focus here is not on the credit score but rather another issue.

So why choose the hassle of selling as a short sale if both will ruin my credit?

The answer is…. for a chance to perhaps avoid the deficiency.

A short sale is simply selling for less than the mortgage balance.  And if you do not bring the cash to the table there will be a difference – the deficiency.

With a foreclosure there will more than likely be a larger deficiency – the entire unpaid mortgage balance and who knows what other expenses!

As part of the short sale process there is an opportunity to request forgiveness of the deficiency or, at a minimum, negotiate a reduction with a personal note (even interest free).

In a foreclosure you are likely on the hook for a long time to come.

So why choose the hassle of selling as a short sale if both will ruin my credit? 

The short sale gives one a chance to control the outcome more than a foreclosure.

Considering selling your Brevard County, Florida home as a short sale?  Call me to discuss the process.  If you prefer, send me an email.






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