Short Sales Compared to Foreclosures – Which is Better?

by tammy on August 6, 2010

Whether you are in the market to flip houses or just looking for a good deal on your own, you will want to be certain that you do get the best one to meet all your needs and this may be done by either a short sale or a foreclosure to help you get a great deal.

However, if you are the homeowner, you will want to be certain that you make the most money to help your situation and to allow you to stay in the home if possible. This means that you will be far better off to choose a short sale rather than a foreclosure and this alone will allow you to at least have a much better chance of being able to keep yur home.

A short sale is when you offer a price that is below the amount that is owed on the home and it is accepted. This is a great way for you to be able to keep the home and also not have to go into foreclosure, which is what you will want to avoid as much as you can.

When you try getting a short sale it is when the lender will forgive a portion of the loan and taking the amount they are offered. The reason that lenders are willing to do this is to avoid not getting any money out of the sale at all. Lenders are very much aware if they do not act quickly in situation like this it can lead to bankruptcy on the part of the homeowner, and if this occurs they will not get anything at all.

So, when comparing a short sale to a foreclosure you can rest assured that you will be much better off to do the short sale than the foreclosure. This is very important to anyone that is looking for a way out of their financial situation and to try and keep their home. 

This has become a very common problem in the last couple years to anyone that may have lost their job or any other number of things that may have occurred due to the recession that we all have experienced. There have been a lot of people who have suffered a great deal financially and may have really struggled to stay in their homes, so this has lead to more short sales and foreclosures.

However, if you find yourself in this situation, you will certainly want to choose a short sale as this is very likely the best way to help save your home. It can really allow you to save your home and avoid foreclosure as well as bankruptcy. These are two things that can really cause your credit score to suffer and this means you will want to be certain that you do take the time to do your research and find the best method for you when it comes to saving your home.

{ 1 comment… read it below or add one }

Anne Lindsay on Short Sale August 6, 2010 at 10:13 pm

If losing your house is the only path left open in front of you then short sale id definitely better than foreclosure.

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