subject: Should You Choose A Quick Sale Over Repossession? [print this page] Read and see if this sounds all too familiar:
My wife and I have re-negotiated our mortgage payments due to a recent illness in the family. We have been making the payments every month even though our home is considered negative equity. We owe much more than our house is worth and we are wondering whether to try for a quick sale or let our house be repossessed by the bank.
This situation is all too common places in the 21st century. Since the crash millions of home owners have felt the pinch, with most losing the battle to keep their home. This unfortunate tale comes in many forms an unexpected job loss, a divorce or even an untimely death. No matter the circumstances, no one purposely pursues avoiding mortgage payments.
Lenders and banks can only offer so much in respect to a home owners hardships. After all, the lenders or banks stand to make a substantial loss as well. Being served an eviction notice is disheartening and many home owners feel as though they failed miserably. The first thing you must understand if you find yourself in a similar situation is you are not alone. As pointed out, millions of people across the UK and North America have lost their homes due to economic turmoil. But, there is a way where you dont have to lose your shirt at the same time.
Quick Sale vs. Repossession
Making a decision on whether to opt for a quick sale or repossession will depend greatly on several factors. For some home owners it might seem easier to throw in the towel and let the bank take the house, however it might not be the smartest choice.
There are benefits to selling your home as quickly as possible; and there are companies that specialize in short sales, who can at the same time stop the repossession process.
Here are a few of the benefits available through a quick sale:
The companies specializing in quick sales usually charge no fees. This includes home evaluation costs, any estate fees and even legal fees.
They talk with the lender
You are in total control
Buy and rent back options are also available
The purchase will be handled in the same way as simply selling your home
You are given a fair amount of time to leave the home
Unfortunately there are not a lot of benefits involved with foreclosing. At most, desperate home owners severely in arrears with payments can wash their hands of the matter and move on. The next question however; is what the better credit choice is?
The Big Question: What will happen to My Credit?
Regardless of the choice you make, both options will affect your credit score. One however is much better than the other. Allowing your home to be repossessed by the bank will be more harmful to your credit rating than a quick sale.
Heres why:
Mortgage payments were unfortunately missed, so this will reflect badly on your credit report. But, even worse is allowing the bank or lender to repossess because next to missed payments on the credit report; a glaring note of repossession will be alongside it. This drops your score even more, making recovery that much longer.
If you can in fact arrange a quick sale, you will avoid the glaring repossession note and recover much more quickly. This gives you the opportunity to eventually start fresh while youre still young.
Do the research and find out today if you qualify for a quick sale.
