Foreclosure Fears and Short Sale Success, Knowledge is Power
If you are currently behind on your monthly mortgage payments you may have thought about just letting your property go into foreclosure and that maybe the worst decision you can make. There are other solutions to avoid foreclosure and suffer destructive effects of your mortgage crises such as a short sale. A short sale has become a savior for many Stockton and Lodi home owners. The market value of home has decreased from the highs as much as 40 to 60 percent. Homeowners are underwater in their mortgages and are left with no alternative other than to attempt to sell their homes for less than what is currently owed on the mortgage.
In the current economy and estate market market many people often speculate about the differences between short sales and foreclosures. In this commentary we will clarify the differences between short sales and foreclosures.
Selling your home in short sale while not the best situation, it is a much better alternative than going into foreclosure. A short sale can be a win win situation for both banks and homeowners The bank will generally still obtain a large settlement on the outstanding mortgage balance from the sale and the homeowners will avoid the overwhelming affects that come along with foreclosure.
If you are thinking of letting your home go here are a few reasons why you might want to consider trying to sell your property first.
When you look to purchase another home in the near future you will have a much easier time doing so after a short sale. If your payments where never more than thirty days late and the lender does not require you to pay back the loan then you may be eligible to buy another home immediately. If your payments are overdue when the sale of your home closes escrow you will probably not be able buy a new home for at least the next two years if you go into foreclosure you will not be able to buy for 5 to 7 years.
Both of these events will have different affects on your credit score as well. A short sale is not necessarily viewed in a negative way and usually does not create a huge drop credit score. Usually homeowners who sell their home as a short sale will see their credit score drop anywhere from 50 to150 points it will be reported as settled, paid as agreed your credit report. It is also important to be aware that the negative marks will mainly only be caused by late payments prior to closing. For individuals who are able to manage their monthly payments all the way up to the time of closing their scores may drop as little as 20 to 50 points. The affects on your credit caused by foreclosures are far greater and much more damaging to your credit. Point drops due to a foreclosure can range anywhere from 200-400 points.
There are several other affects of foreclosures that are not associated with short sales. For instance loan applications will not ask about short sales but will certainly ask if you have recently had a foreclosure. If you have had one then you are much less likely to receive the loan. Also, foreclosures will show up on your credit score whereas short sales will not. The foreclosure will be listed clearly on your credit report while the negative effects of selling your home will be in the form of late payments on your credit history.
The Lilly Team has been helping home owners facing foreclosure and offers a no obligation consultation. We are short sale certified and HAFA certified call us today at 209-479-9222 or e-mail us at thelillyteam@comcast.net Visit us at www.hughlilly.com .
Stockton Neighborhoods: Brookside, Lincoln Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West Spanos Park, Weston Ranch, Port of Stockton, UOP.
Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240
Real Estate Multiple Listings: Bank owned homes, Stockton and Lodi Foreclosures and REO’s, Homes in Stockton, Homes in Lodi, Stockton California Listings, Stockton MLS Listings, Lodi MLS Listings, Ca Real Estate, Home Buyers, Stockton Homes for Sale, Lodi Homes for Sale, Stockton Short Sales, Brookside homes for sale, Spanos park home for sale, West Spanos Parke Homes for sale, Old Morada, Golf Course homes, Luxury homes, waterfront homes, Country homes Lodi Short Sales, Stockton Short Sale Specialist, Lodi short Sale Specialist.