Short sales are the best way to give an underwater homeowner a graceful exit from a property they can no longer afford. Until the end of this year and unless Congress renews the Debt Relief Act,
a successful short sale can get the debt forgiven and the homeowners will be able to restore their credit in about two years.
That's not the case with a foreclosure. A foreclosure will stay with your credit report for 7 or more years and the debt will still be there for creditors to try to collect. Most likely your lender will sell the debt to a collection agency and you will get those unwanted calls and letters.
Of course it's best to work with the lender and see if you can get a loan modification to keep the home, but if that doesn't work then a short sale will be your best bet. The keys for cash program,
deed in lieu of foreclosure also leaves you with the debt and the problems of foreclosure, so that's not really better.
The good news is that both loan modifications for those who qualify and short sales are getting easier, more available. It's what we need to solve the housing crisis, so if you're going for a loan modification be sure to work with the lender, provide all they need and be persistant. That's up to you. If you think a short sale might be your best bet be sure to talk to a local short sale specialist.
Work with someone you like and trust, me I will always work in your best interest and get the results you want and need.
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Mill Valley Short Sales
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