As a homeowner grappling with financial difficulties, you might be considering mortgage relief options. The two most common choices are short sale and foreclosure. To comprehend which one is more beneficial, let's delve into their principal differences.
Foreclosure could necessitate homeowners to wait 7 to 10 years before qualifying for a new mortgage. Conversely, with a short sale, this waiting period can be considerably diminished. As per mortgage lenders, homeowners can generally be eligible for a new loan merely 2 to 3 years post a short sale.
A common misconception exists regarding the impact of foreclosure and short sale on a homeowner's credit. Contrary to certain assertions, a short sale usually has a less severe effect on credit than foreclosure. A foreclosure can persist in credit history and public records for up to a decade. On the other hand, a short sale tends to remain on a homeowner’s record for a significantly shorter duration, typically around two to three years.
Many employers scrutinize credit reports during the recruitment process and conduct regular checks for existing staff. As a result, a foreclosure could adversely impact both prospective and current employees. Short sales, on the other hand, usually do not present a distinct risk to employment status.
If your profession necessitates a security clearance or regular security audits – as many do in today's environment – foreclosure can present a significant hurdle. Contrarily, a short sale should not interfere with most security clearances.
In the event that a bank forecloses on a home and is unable to recover the entire mortgage balance through the sale, the lender may pursue a deficiency judgment. This could result in the homeowner having a foreclosure on their record and being responsible for a substantial debt owed to the bank. In contrast, a short sale typically enables homeowners to eliminate the deficiency entirely, thus avoiding potential judgments and future liabilities.
When weighing the options, a short sale often proves to be the superior choice for homeowners seeking mortgage assistance. Nevertheless, undertaking a short sale independently can be a formidable task. It is crucial to have experienced professionals specializing in short sales by your side to increase your likelihood of success.
With a proven track record of successfully closing numerous short sales, the experts at Short Sale Proxy are prepared to provide their assistance. Do not hesitate to contact us today and discover how we can support you throughout the process.
