Foreclosure Vs. Short Sale

FORECLOSURE VS. SHORT SALE

KNOW THE DIFFERENCES BEFORE TIME RUNS OUT

The subjects of foreclosure and short sale often are used in real estate-related conversations as if interchangeable. Nothing could be further from the truth. If you now find yourself in default or headed for it, it’s crucial you know the differences and the impact each scenario may have on your future.

For instance…

• Did you know there are some employers who will terminate an employee who experiences a foreclosure?
• Do you know how long each of these processes will stay on your record and how badly your credit rating will be affected by each?
• Do you know that in some cases, if your employment depends on a security clearance, there is a strong possibility the security clearance will be revoked in the case of foreclosure?

These are very serious matters.

You are urged to review the attached comparison showing the potential outcome in the case of foreclosure vs. a short sale. It is easy to see that a short sale will most often have the least damaging impact on your future. However, time is of the essence as it takes a rather long period of time to negotiate and successfully conclude a short sale. In simple language, if it appears to you that you no longer can hold onto your property, don’t waste time. It is important not to let precious time get away from you.

You owe it to yourself to know the differences; the facts.

Century 21 Adobe Realty agents are knowledgeable and experienced in accomplishing successful short-sale transactions. Won’t you let our professionals guide you through each step?

For detailed comparison of the potential outcome of a short sale vs. foreclosure take a look:

As discussed, options are available to homeowners. I found the following chart at impact your sales now and it was published by the Depressed Property Institute.

One thing I would point out to you regarding deficiency judgments at the bottom of the page. My knowledge is that California uses a non judicial foreclosure process and deficiency judgments do not apply. Having said that, I am not an attorney, nor do I give legal advice. Please seek the advice of a legal or tax professional.

I should point out that the Distressed Property Institute has a disclaimer to the effect that they do not guarantee the accuracy nor will they assume any responsibility for this document. I think this is an informative guide but I would be remiss if I did not encourage you to seek legal counsel as to the recommendations or consequences in this document.

(Consumers are urged to consult legal counsel regarding all legal matters and a tax professional regarding tax matters.)

(Source: Distressed Property Institute)