Short Sale FAQ ~ Short Sale And Your Credit Score
Foreclosure, short sale or deed-in-lieu, these are the three options that distressed homeowners have to consider when searching for the best option to get out from under their underwater home. If you’re an Orange County homeowner who is considering short sale, here’s a breakdown of what to expect with each option.
A Foreclosures typically take a lot longer to complete than short sales. In many cases a home may stay in foreclosure for six months to one year (and sometimes longer) and then after the foreclosure is approved, the lender may still go after the homeowner for the remaining balance on their loan and this can mean more stress for the underwater homeowner in Orange County who just wants relief.
With a deed-in-lieu, you will have the ability to get out from under your mortgage once you hand over your home’s deed to your lender. The biggest problem with this option is that it will leave a negative impact on the homeowners credit report for as long as seven years.
The last option, but also the most popular and effective in this day and age is short sale. With this option the Orange County homeowner can get out from their underwater home in as little as 45 days plus they will enjoy the protection of short sale laws in California that protect the homeowner from the lenders attempts to go after them for any short fall or deficiency that remains after their short sale has been approved.
What’s even better about a short sale is that the homeowner will also have the option of buying another home within 5 years since most lenders typically respond more favorably to a homeowner who has had a previous short sale compared to either a deed-in-lieu or foreclosure.
Short Sale Success In California
According to recent reports by RealtyTrac, more homeowners have chosen short sales vs. foreclosures in the last year and the number of short sale transactions in California is up by 0 percent compared to the same time last year.
To learn more about the benefits of short sales, contact Fred Sed & Associates today at (949)272-0125 or EMAIL US to get your questions answered and set up a no hassle, short sale consultation.