Home Selling in 91367>Question Details

Jake, Home Seller in 91367

Besides your credit, is there any other benefit to doing a short sale over a foreclosure?

Asked by Jake, 91367 Wed Jan 13, 2010

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9
Deficency right off is also a benefit of a short-sale.
6 votes Thank Flag Link Wed Apr 11, 2012
Hi Jake,

No matter how you look at it, short sale is 95% of times recommended over Foreclosure.

Alex Khallifard
Listing and Selling Agent
RE/MAX
Alex@TopHomesLA.com
818-925-8088
Web Reference: http://www.TopHomesLA.com
0 votes Thank Flag Link Fri Mar 13, 2015
If you are making your mortgage payments on time before the short sale, you will still be eligible for FHA financing once the short sale is complete. With a foreclosure you have to wait 3 years.
0 votes Thank Flag Link Wed Apr 11, 2012
Jake:

According to my clients, one of the biggest benefits of doing a short sale is that they remain in control of their lives. They can give whatever reason they want as to why they are selling. They can, in essence, save face if that is important to them. Most people tell me that they feel like "they are doing the right thing" when they short sell, because they know the lender gets more of what is owed to them than they will in a foreclosure. If any of these reasons resonate with you, then a short sale is the better answer.

If, on the other hand, you prefer to have someone else dictate the timeline of when you move, you have no problem with having the notice of trustee sale posted on your front door or gate, and you are okay with getting all the phone calls and mail from the 'foreclosure assistance programs', 'foreclosure investors' and 'foreclosure refinancing companies' whose main interest is getting your house for bottom dollar, then don't do a short sale.

As stated in my other response to you, Foreclosure is not an option. Foreclosure is something that happens to you when you have exhausted all your options. Dare to Dream.

Shel-lee Davis, CDPE
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
0 votes Thank Flag Link Thu Jan 14, 2010
Yes there are many other benefits of doing a short sale! Here is a list of them i have posted on my website:
http://www.vgrouphomes.com/atj/user/AdditionalGetAction.do?p… Hope this information is helpful to you.

John & Sarena Villaescusa
Owner/Realtor/Broker
Keller Williams Realty
Cell: 562-818-2671
Email: Johnv@kw.com
Website: http://www.VGroupHomes.com
Web Reference: http://www.VGroupHomes.com
0 votes Thank Flag Link Thu Jan 14, 2010
That's a good question Jake. As Patrick mentioned according to fannie mae a homeowner who successfully negotiates and closes a short sale will be eligible for a fannie-mae backed mortgage after 2 years - whereas with a foreclosure they will have to wait for a period of 5 years. Also, on any future credit applications there may be a question asked such as, "have you had a property foreclosed?" and you'll have to answer yes. With a short sale, there is usually no such question. Also, a foreclosure may cause an issue with your current employer or for future employment. Employers can check your credit. And, I'm assuming you're going to have to rent a home for a while after your current property which means that you will have to be "acceptable" to your landlord and foreclosure may not look too good.

Emotionally speaking--I find that with a short sale you may feel better than you would with a foreclosure. I've worked with banks listing foreclosures myself and have seen homeowners have to turn their property over and give their keys to the banks and it's not a great feeling. At least with a short sale, you could be selling the property to a family.

Jake, I'm in Woodland Hills myself. In case you have not listed your home and have questions. Feel free to contact me. Or check out my website at http://www.distressedhomeoptions.com. I specialize in distressed properities. Good luck.

Sara Mehrpouyan
Rodeo Realty
818-903-2040
0 votes Thank Flag Link Wed Jan 13, 2010
Some lenders are allowing or giving sellers money to expedite a short sale. Patrick covered the main benefits, which are availability of loans at a sooner time. If you have any questions about the short sale process, please feel free to contact me.

Richard Schulman
#1 Listing and Selling Agent
Keller Williams
schulmanrd@yahoo.com
310-482-0173
0 votes Thank Flag Link Wed Jan 13, 2010
Besides less hit on your credit rating, with a short sale, you can get a loan sooner (2 to 3 years) than you can with a foreclosure (5 to 7 years).

A foreclosure is more of a legal matter. The sheriff is involved and a judgment is placed against you. A short sale is just cleaner then a foreclosure.
0 votes Thank Flag Link Wed Jan 13, 2010
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