subject: Peter Van Dam Broker Tips: Short Sale Against Foreclosure [print this page] Peter Van Dam Broker Tips: Short Sale Against Foreclosure
The economy has not yet bounced back since officially being dumped "The Great Recession." Jobs are still being lost all over the nation with no means of being replaced. Thus, people cannot pay their bills or their mortgages, which means foreclosures are on the rise. But did you know that there was an alternative to foreclosure?
Money is necessary to pay bills but with a depressed economy, finding that money is nearly impossible. You probably think that there is nothing you can do about it, right? Or maybe you're up all night dreading getting kicked out by the bank with no where to go.
Well, there is a less disastrous solution. You can forego a foreclosure and negative ratings on your credit if you simply seek out the help of a distressed property specialist. I bet you probably didn't even know they existed. You didn't know because you had no need for one before nor did you realize that a service like this was available.
A distressed property specialist or broker can help you get out of your financial fiasco by trying to appeal to the banks using a tactic {called|known as} a short sale. A short sale happens whereby the person that cannot afford to make his mortgage payments to the bank has a ready buyer willing to take the loan off the current payors hands, usually at less than what the bank is currently getting.
The seller is happy because they don't have to stress about another mortgage payment. They also experience less negative effects to their credit with a short sale as opposed to a foreclosure. We're talking about at least a 5 year discrepancy. Foreclosures usually ding your credit by seven to ten years, but a short sale is generally a two year bad mark.
Another benefit is that the original party making payments can sometimes wash their hands of any secondary or loans that they have (also known as a second mortgage). This means that they may be forgiven this debt and walk away from it without looking back.
The five year advantage means that a person who has experienced a short sale can usually be credit worthy ready within 2 years of having this happen as opposed to the person who went through with a foreclosure who can't reapply for anything for at least 7 years. When you put that into perspective isn't the short sale so much better?
Not enough people know about short sales so the attempt of this article is to highlight that such a service exists. If you are looking for someone that can help you put together a short sale package then it would be a good idea to look for a distressed property specialist in your particular area.
