If you’re in financial trouble and realize that you can’t pay your bills each month, you’re probably worried about what your future holds. It’s an awful feeling to not be able to pay your mortgage and the possibility of facing foreclosure can be scary. Fortunately, a short sale can help you maintain control and dignity through a difficult time.
A big benefit with short sale is the ability to keep your financial options open. Following a short sale transaction, you will notice a black mark on your credit score. But this is nothing compared to foreclosure, which will negatively impact your credit rating for 5-7 years.
Additionally, no one other than your real estate agent and your buyer needs to know about your short sale. If you were to experience a foreclosure, the bank can put signs on your property and advertise the upcoming foreclosure auction of your home, which can be embarrassing.
In terms of your ability to get another mortgage in the future, short sale is definitely favorable compared to foreclosure. Mortgage lenders will be able to see that when you got into difficulties, you were still willing to keep the lines of communication open with your lender and work out your issues. This means you can probably get a new mortgage in about two to three years, if your financial circumstances have changed. Other smaller lenders and creditors (say, for a car loan or credit card) and even potential landlords also would rather see a short sale on your record than a foreclosure.
The biggest benefit, however, is peace of mind. Following a short sale transaction, you'll be able to resolve your mortgage debt problems and begin to move forward with a fresh start.
If you’re considering a short sale, contact us at Ark Law Group today for a free consultation. Our experienced short sale attorneys are here to help you navigate through this difficult time.