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Jul 31, 2015 · Learn the differences between short sale and foreclosure, and how they affect your credit score, home loan options and tax consequences. Find out when to choose each option and what to expect in the process.
- Short Sales vs. Foreclosures: An Overview
- Short Sale
- Foreclosure
- Special Considerations
After years of disciplined saving and careful planning, a sudden financial crisis—like unemployment, other income loss, interest rate hikes, or an unexpected debt burden—can turn your hard-won dream of home ownership into a nightmare. If you get behind on your mortgage payments or if your mortgage is underwater(the home is worth less than the amoun...
It is important to note that no short sale may occur without lender approval. Before the short sale process can even begin, the lender who holds the mortgage—typically a bank—must sign off on the decision to execute a short sale. Because the lending institution could lose money on a short sale, they also need documentation that explains why a short...
Unlike a short sale, foreclosures are initiated only by lenders. The foreclosure itself—when the lender seizes the property—is the final step of a legal action by the lender to take control of the property and force the sale of the home to make good on their investment—and the pre-foreclosure process begins only after a mortgagorhas fallen a certai...
Short sales and foreclosures have major consequences to homeowners. Both require homeowners to give up their properties—but that's where the similarities end. Short sales tend to be lengthy and paperwork-intensive transactions—sometimes taking up to a full year to process. The pre-foreclosure process can also be quite lengthy, but once the lender h...
Apr 24, 2024 · Learn the difference between short sales and foreclosures, and how to buy a distressed property that suits your needs. Compare the pros and cons of each type of transaction, and find out how to search for short-sale and foreclosure listings.
Oct 18, 2022 · Learn the key differences between short sale and foreclosure, two options for homeowners who fall behind on mortgage payments. Find out the pros and cons, the impact on credit score, and the process for buyers and sellers.
Jun 20, 2021 · Compare the pros and cons of short sale and foreclosure for homeowners who can't afford their mortgage payments. Find out how they affect your credit, taxes, deficiency judgments, and buying options.
Oct 24, 2021 · Learn how a short sale and a foreclosure differ, how they affect your credit and finances, and when to choose one over the other. Upsolve is a nonprofit that helps you get out of debt with education and free debt relief tools.
People also ask
What are the advantages and disadvantages of a short sale?
What is a short sale & a foreclosure?
Should you buy a short sale or a foreclosed home?
Does a foreclosure hit credit harder than a short sale?
May 25, 2024 · Short Sale: Affects credit scores less dramatically, with a potential drop of 85-160 points. The impact may last 2-3 years, and homeowners may be able to qualify for a new mortgage sooner than after a foreclosure. Foreclosure: More significantly impacts credit scores, with potential drops of 200-300 points.
