Is a short sale better than foreclosure?
Yes, in many respects a short sale is less harmful than having a foreclosure on your credit report. However, each lender will have their own underwriting guidelines and view short sales/foreclosure differently. Therefore, you should inquire about your bank’s specific rules regarding short sale. You should also confer with your accountant, as there may… Read More »
What is a short sale?
In a short sale, the homeowner and mortgage company agree to sell the home for less than the amount owed on the mortgage. Short sales may be a good option for homeowners who have no equity in the property and want to abandon the home without going through foreclosure. Neither party can force a… Read More »
Do I owe the bank money after a short sale?
Possibly, a short sale does not necessarily remove your liability to the bank for the loan. Even though the bank has agreed to the short sale, they may still hold you responsible for the remaining loan balance. Therefore, you should review the short sale documents to see if the bank is waiving the loan… Read More »
Is a short sale better than bankruptcy?
In many respects, bankruptcy is more helpful to homeowners than a short sale. For instance, with bankruptcy you can remove your liability on the loan. On the other hand, a short sale does not necessarily release you from the debt. Additionally, there may be tax consequences, such as a 1099C with a short sale…. Read More »
