What are the benefits of a short sale for stopping a foreclosure?

When facing the difficult situation of a foreclosure, a short sale can offer a way to stop the foreclosure. A short sale is when the homeowner agrees to sell the property for an amount that is less than the owed mortgage balance. The lender agrees to accept this amount in full satisfaction of the debt. The primary benefit of a short sale is that it can help a homeowner avoid foreclosure and keep their credit intact. A foreclosure is a public record that can remain on a person’s credit for up to seven years, negatively impacting a person’s ability to buy a home or obtain other forms of credit. With a short sale, the homeowner’s credit is impacted, but not as significantly as with a foreclosure. Another benefit of a short sale is that it can potentially allow a homeowner to negotiate with the lender to eliminate any deficiencies created by the short sale. This means that if the home sold for less than what the lender was owed, the lender cannot come after the homeowner for the remaining balance. Finally, a short sale can help a homeowner move on with their life. A foreclosure can be a long and stressful process and can take up to two years to complete. A short sale can resolve the situation much more quickly, allowing the homeowner to move on with their life and put the foreclosure process behind them.

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What are the benefits of a short sale for stopping a foreclosure?

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