What Are The Benefits of a Short Sale vs. a Foreclosure?


Via Sergio Rebollo Jr. (Exit Prime Realty):

1. Minimize The Damage To Your Credit

A Short Sale will affect your credit but not as detrimental as a Foreclosure will. A Foreclosure comes with a Final Judgment which remains on your credit report for 7 years. A Short Sale usually is reported as a “settled” account on your credit report. By maintaining prompt payments on other credit lines and diligently working on improving your credit score, you may be able to rebound to a decent credit score within a couple of years.

2. Your Personal Well Being

Experiencing a Foreclosure can be emotionally disheartening. The feeling of losing your home to the bank or possible eviction by a bank can lead to many sleepless nights or even tension within your family. Living with the effects of the Final Judgement or Foreclosure on your credit report for 7 years will require possible explanations whenever you apply for credit. A Foreclosure can be mentally devastating.

A Short Sale, handled by a Short Sale Realtor, is the sale of your property just like any other real estate transaction except it takes much longer due to the negotiated settlement process required with the bank. You do not get evicted from your home. You sell your home with a pre-determined closing date just like any other real estate transaction. Most importantly, there is no need for any explanations why you lost your home in a Foreclosure!

3. You Can Buy Another Home Within 2 to 3 Years

If you do a Short Sale and as long as you maintain yourself current on all of your credit obligations, you will be able to purchase another home within a couple of years. This housing crisis will still take some time to recover if not recover. Focus on re-establishing your credit score and you will be able to take advantage of today’s rock bottom real estate prices. Home prices should remain this low for the next few years.

Sergio Rebollo Jr.
Short Sale Specialist
Exit Prime Realty

About susanmorrison

After living in Walpole, MA for many years, our family was transferred to the west coast when I was a senior in high school. In 1983, I graduated from Mission San Jose High School in Fremont, California. I am also a 1987 graduate of Providence College with a major in liberal arts and a minor in business administration. I bring to the table many years of sales experience beginning with thirteen years in Corporate Sales at Delta Air Lines. I'm the mother of three children and I'm very active within the Franklin, MA community. I am also a cancer survivor and support the American Cancer Society Charities.

My husband and I have built five homes and I've lived in a variety of other locations including Toronto Canada, Irving Texas and my current home in Franklin, MA. As a result of all my moving around, I came to the conclusion that I was an expert at moving...why not become an expert on the other side of the table? I earned my real estate license in 2004 and believe that I have found my true niche'. I can empathize with my clients on a variety of levels; whether they are buying or selling. And, like so many other good realtors out there, I believe that possessing good communication skills is one of the many keys to success.

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