Super Fitness Health BlogOrange County Short Sale Realtor
Why would a lender accept a Short Sale over foreclosure? With an uncertain housing market in Orange County, it is often in the financial interests of a lender to accept a negotiated settlement rather than incur the costs of a prolonged foreclosure process. And if a lender does repossess a property, they could continue to incur costs for months in order to maintain the property while they try and sell it. A short sale is a practical and cost saving alternative for all parties involved. An Orange County Short Sale Realtor can assist homeowners with coordinating a short sale.
A financial hardship is a situation that has a life changing effect for the borrower that results in an in-ability to pay the mortgage debt in either, short or long term. Some examples are:
• Separation or Divorce
• Medical Bills
• Inability to work due to health reasons
• Death of Spouse
• Job Relocation
• Reduced Income or Unemployment
• Business Failure
• Adjustment in mortgage payment or unforeseen increase in living expenses
What about my credit? Won’t a Short Sale ruin my credit? A short sale usually does not reflect poorly on a credit report. And it cannot begin to compare to the damage your credit will incur if you are ultimately forced into foreclosure. With a foreclosure, you can expect to be unable to obtain a mortgage for at least 7 years. With a short sale, you can expect to resume normal borrowing (for mortgages, car loans and credit cards) within a very short period of time. Remember, with a Short Sale, you walk away with your mortgage debt zeroed out. With a foreclosure, the collection stays on your credit indefinitely! Information and assistance from an Orange County Short Sale Realtor is advised when deciding if a short sale is the best option for a home owner.
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