People who are struggling to make their mortgage payments on time may wonder what will ultimately happen with their home. Homeowners who become delinquent with their payments could be in danger of having their property fall into foreclosure. Aside from losing their home, a foreclosure can have long-lasting impacts on someone's credit history and credit score. As a result, it may be wise to find an alternative to foreclosure.
One such alternative is a short sale. In a short sale, a lender agrees to accept less than what it is owed. Banks and other financial institutions may prefer short sales to foreclosures because they will still receive much, but not all, of the outstanding balance. Also, in a short sale, a property is usually sold in the traditional way, where the seller and their real estate agent list the property and potential buyers submit offers. In a foreclosure, the lender is responsible for selling the property, which may happen at an auction.
Short Sale Vs. Foreclosure: Is There A Big Difference?
Homeowners who are considering a short sale have more options than those who are facing foreclosure. Working with an experienced Orlando real estate attorney, such as one of the lawyers from Korshak & Associates, can help you understand the impact of your decision and what the long-term consequences are.
Both a short sale and a foreclosure will negatively affect your credit score and credit rating, but a foreclosure has both a more severe and a longer lasting impact than does a short sale.
We have helped many homeowners navigate a short sale, working closely with them throughout the process. Contact our real estate attorneys at Korshak & Associates to learn more by calling 407-917-6786 or toll free at 800-587-2470. You may also contact us by email.