Tammy Grassi Achieve Realty, Inc.
10475 Perry Hwy.
Suite 200
Wexford, PA 15090
Phone: 724-933-1980 x215 Mobile: 724-321-0336 Fax: 724-871-1383 Email Tammy

What is a Short Sale?


Benefits of a Short Sale VS Foreclosure


You might be facing a possible foreclosure on your home or even bankruptcy that has led you to the question of whether to just walk away and allow the lender to foreclose your property. However, allowing this to happen will greatly impact a lot of factors in your life, most especially your credit. This is why it is important that you should consider short selling your home.

http://activerain.com/image_store/uploads/5/3/3/0/5/ar132284881950335.jpgThere are many advantages and benefits of a short sale VS foreclosure. The most important benefits of a short sale vs. foreclosure are related to your current credit, your future credit, your employment opportunities, and your deficiency liability. If you are still considering foreclosure rather than short selling your property, here are some of the benefits and the advantages of a short sale that might change your mind.

Benefit # 1: A Short Sale Has Lesser Impact on your Credit Score

A short sale, while still affecting your credit score, only has a minimal effect on it. A fifty point deduction from the credit score usually follows a short sale on a property. Late payments usually have the biggest negative impact on credit scores after a short sale has been performed. These can affect your credit score with a thirty point deduction, or even more.

On the other hand, if you allow foreclosure on your property, your credit score will suffer from a three point deduction or more. This will even stay and reflect on your history for ten or more years. This is one of the reasons as to why you should consider short selling your property rather than just awaiting foreclosure.

Benefit # 2: A Short Sale is usually reflected as “Paid” on your Credit History

One of the greatest advantages and benefits of a short sale VS foreclosure is that this does not have a credit report that shows up on your credit history. After your property has been sold, the company who handles your mortgage will report this on your credit history as “Paid as Negotiated,” “Settled in Full,” or simply as “Paid.”

However, with foreclosure, this will be detailed on your credit history and will stay on your credit record for ten years. Aside from these, it will also be permanently recorded in your county’s public records. This disadvantage of foreclosure should be another reason as to why you should stick with a short sale rather than foreclosure.

Benefit # 3: A Short Sale usually does not have a bearing on your Current Employment

Another of the greatest benefits of a short sale VS foreclosure is that this is not reported as an actual item on your records. This means that it usually does not have any bearing on your current employment.

With foreclosure, you are already considered as an individual in a sensitive situation. This can have a negative effect on your current employment. Your employer reserves the right to check your credit scores and will do so actively. Foreclosure is usually a ground for termination or re-assignment.

short sale realtors

Benefit # 4: A Short Sale usually does not affect your Future Employment

As discussed above, a short sale is not reported as an actual item on your credit record. Short sales usually do not affect the future employment of individuals who have performed a short sale on their properties. This means that you do not have to worry about not being qualified for future employment.

On the other hand, foreclosure is one of the most negative factors that can affect your future employment. As this is one of the factors that most employers look at, if your property recently faced a foreclosure, you might be disqualified from the job that you are applying for.


Benefit # 5: A Short Sale does not affect your Application for a Future Loan with a Mortgage Company

If you would like to apply for a loan with a mortgage company even after performing a short sale on your property, you can do so without worrying about your application. This is because you do not have to declare that you have recently put up your home for a short sale. This is one of the advantages and benefits of a short sale VS foreclosure.

On the other hand, your application for a loan will be affected by foreclosure. One of the questions that you would have to answer in applying for a loan with a mortgage company is “have you had property foreclosed upon, or given title, or deed in lieu thereof in the past seven year?” If your answer is “yes,” then you are required to offer an explanation before approval. With a yes, the interest rate that you will receive with the loan will be affected.

Benefit # 6: A Short Sale results in a Lower Amount of Deficiency

Another of the greatest advantages and benefits of a http://activerain.com/image_store/uploads/4/7/0/1/1/ar132284887711074.jpgshort sale VS foreclosure is that you only have to suffer from a lower amount of deficiency. With a short sale, your property may be sold at its market value, or near its market value. In most cases, this value is greater than the amount that you will get with a foreclosure. The best thing about this is that, at most times, the deficiency is usually forgiven. Short sales also help cut the losses of your lenders, so if you want to do the ethical thing, you should choose to put up your property for short sale.

With foreclosure, your home will be subjected and presented to a public sale or auction. If your home will not be sold through these processes, it will go through the REO system of the bank. This does not only results in a longer processing and selling time of your property; it also has the potential of being sold at a significantly lower amount and a higher deficiency.

These are just some of the advantages and benefits of a short sale VS foreclosure. Taking a closer look at all these benefits of a short sale VS a foreclosure will help you determine the best path to take. If you care about your credit score, your records, and your employment, you should definitely consider short selling your property rather than just allowing it to go on foreclosure.





Stop Pennsylvania Foreclosure. PA Short Sale Specialists - We Can Help 


PA Short Sale Specialists - We can help 

•· Do you owe more than your home is worth? 

•·Have you received a notice of default in the mail? 

•·Do you want, need, or are being forced to move? 

•·Did you buy an investment property that you need to unload? 

•·Are you in a divorce situation? 

•·Recently unemployed? 

•·Have you fallen on medical hardship? 

If you answered yes to any of these questions above, you may want to consider a Pennsylvania. Do you need to sell your home, but owe more than it's worth? You are not alone. Many people are stuck in unaffordable loans, or simply need to move. Our qualified team of Butler and Allegheny County Short Sale Specialists  can help short sell your home. We handle all bank negotiations so you can move on with your life. Call 724-933-1980 x215 Now. We Can Help. Don't wait until it's too late. Act Now.

What is a Short Sale? 

A Short Sale occurs anytime the value of the property is less than the amount owed to the lender and the lender agrees to write off the difference. In other words, the homeowner is "upside down" on his loan. Short sales may be forced by a variety of situations: job loss, loss of income, divorce, medical bills, or changing payments on adjustable rate mortgages (ARMs). 

Why would a lender agree to a short sale? Lenders make their own business judgments when accepting or rejecting short sales. Lenders are in the business of making and servicing loans, not taking properties back through foreclosure and reselling them. They want to avoid spending time and money to foreclose, evict borrowers, and resell properties. They want to avoid paying property taxes, insurance, maintenance and repairs. They want to avoid risking theft and vandalism to the property. Before the mortgage lenders will consider a short sale, they need to know financial information about the seller and why the seller cannot pay the loan. The seller will need to submit information to the lender to assist the lender in deciding whether to accept a short sale. 

Contact us today to get help from an agent that specializes in your area. 

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