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By Matthew DeFede | Managing Broker in 07110

Scoping Bergen County Short Sales vs. Foreclosure Outcomes

For bargain-hunters looking over 2013's first listings of foreclosed homes for sale in Wyckoff, the opportunities speak for themselves. Throughout the year, the size of that selection varies: the official total of Bergen County foreclosed homes for sale for all of 2012 won't be finalized until later in the month. But no matter how large that increase or decrease turns out to be, in addition to representing a unique opportunity to potential buyers, each one also posed a substantial decision for the departing homeowner.

The question each faced was whether to attempt to short sell or to allow their property to be foreclosed upon. Choosing the most positive outcome means shedding the negative repercussions as rapidly as possible - clearing the way for a brighter future. Depending on the unique situation of each homeowner, one option is more appealing than the other. Some of the major considerations:

Recovery Period.  In most cases, credit recovery from a short sale takes less time than it does from a foreclosure. The difference on a credit report is as simple as the notation “foreclosure” vs. “debt settled for less than full amount.” 

Control. The short sale route sometimes allows the homeowner added flexibility, such as influencing when the home enters the market, fixing the moving date, or even helping determine which fixtures are to be included.

Buying Again. After a short sale, provided the balance of the credit history is robust, obtaining a new mortgage (and a new home!) is sometimes possible in as little as 1-2 years.  After a foreclosure, that period can be as long as five to seven years. Nevertheless, in either case, there is a ray of light: government-backed loans may become available sooner.

Whether buying or selling any of the foreclosed homes for sale in Wyckoff, it is important to get solid financial and tax advice before making the important decisions.  As always, I am available to meet confidentially to help evaluate potential short sale or other real estate objectives. 

 
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