Short Sale vs Foreclosure

Which way to turn?
It can be confusing. However, one choice is far better for you.

We can usually stop the foreclosure process and help you salvage your credit.

Never a cost to you
Your lender pays Realtor fees plus all traditional Seller costs.

The Attorneys and Title Companies we work with will NEVER charge you, even if the property doesn't sell. 		Who gains with a Short Sale or Foreclosure? No one really. However, in just about every scenario a Short Sale is more beneficial for both the homeowner and the lender.

Make no mistake. A Foreclosure is a 'one sided' action by your lender and the courts to force you out. Even worse, it also allows the bank to seek restitution for the outstanding debt and the cost of selling the property. This could result in garnishment of your assets and wages.

A Short Sale, on the other hand, is an agreement between you and your lender whereby you 'cooperate' on a sale (make the property available) and in turn, the lender accepts a lower price than what is owed. A Short Sale avoids foreclosure and usually saves both parties thousands of dollars.

Short Sale Foreclosure
Timeframe Usually 3-6 months Usually 6-18 months
Public Notice No public notice. Your neighbors may not even know until you are gone.  Your friends won't know unless you tell them. 'Public Notice' is required by law. That means in the courts and published in newspapers essentially putting everyone on notice.
Outstanding Debt Balance The law allows lenders to 'forgive' the outstanding balance. So, lenders rarely seek damages for any loss from the owner. The lender has the right to ask the courts for a judgment against the owner personally. Make no mistake, they can go after assets and wages.
Seeking Payment Rarely, because of the Debt Relief Forgiveness Act & Debt Cancellation The Judgment can include garnishing assets such as bank and stock accounts, income and more.
Judgement No.  You walk away Free and Clear. Certainly. This means 1 and possibly 3 'Judgments' on a credit report.
Credit Scores If the bank does not request a judgment, the credit may be affected by as little as 100 points. Devastating. Usually dropping scores 200-300 points, even more depending on the judgment levied.
Credit Disclosure Short Sales do not appear on credit reports. The loan is usually reported 'paid in full, settled, paid as agreed' Yes. You must also declare a property was foreclosed on or, title or deed was given in lieu of foreclosure.
Time on Credit Usually remains on a credit report for 2 to 5 years. Remains on a credit report and damaging your credit for 10 years.
Time before  next loan As little as 24 months At least 5 years to possibly never.
Your Costs Nothing Immeasurable

Disclaimer: The information provided here is for general information purposes
only. Contact legal consul for advice on your specific situation. No information provided
here shall be construed as legal or any other advice. No representation is made to the
completeness or accuracy of the information. As such, no part of this should be used as a
substitute for consultation with professional legal advisor.