Short Sale: An Alternative to Foreclosure

If you’re at the point where you think that allowing bank foreclosure is the only possible solution to your financial troubles, then you probably didn’t realize that there is an alternative. It’s called a short sale and shares many of the positive outcomes of foreclosure and fewer of the negatives. Short sale is essentially selling your house to a buyer for less than the amount that you owe your bank for the house loan. Before performing a short sale There is a much better alternative.you’ll need to speak to representatives from your bank or use your attorney, and set up an agreed-upon plan. If your bank does not sign off on this that it is not possible to make a short sale. The first advantage: if you’ve made late payments or missed payments on your loan then economic evidence shows that a short sale will have a lower effect on your credit rating than would a foreclosure. Another great advantage of short sale is there seems to be a significantly shorter waiting period when taking out a new loan for a house a later time. Experts report that a foreclosure has an average of a 5 to 7 year waiting period while properly carried out short sale results in around 2 years. This could be a considerable advantage and is not something to be taken lightly when planning the future. So if foreclosure is staring you in the eye, then you should speak to an accountant about carrying out a short sale. My personal recommendation would be the friendly and efficient service given by the people at Feeley and Driscoll or you might try another online accounting firm. Switching from a foreclosure to a short sale could be the best decision you ever made.