Short sale expert discusses why a short sale is better than foreclosure
MERRITT ISLAND, FL
Homeowners who are struggling with house payments have heard that a short sale is better than a foreclosure, but is that really the case?
Noted distressed real estate expert Ted Thomas says yes.
“If you’re having problems making payments on your house, the first thing you need to do is try to refi the mortgage or sell it. But sometimes a bank won’t agree to a refi and you owe more than the house is worth,” he said. “In that case, a short sale may be the best option for you.”
He gave three reasons why a short sale is better than a foreclosure.
“First, a short sale takes a while. You can stay in your house and try to find a new place to live while the bank reviews the paperwork and looks at offers,” he said. In a foreclosure, you’re kicked out when the paperwork gets served.”
A second reason is lenders will let a person who went through a short sale buy a house sooner than if they went through foreclosure. Some government programs allow a person to buy a home almost immediately after a short sale.
“And thirdly, there’s the impact to your credit. You can sometimes negotiate what the bank reports to the credit agencies. A short sale is generally less damaging to your credit than a foreclosure and a lot less damaging than bankruptcy,” Mr. Thomas said.
In a short sale, the bank agrees to let the homeowner sell the house for less than what is owed. Mr. Thomas said a bank can be convinced to do this, but it may take some work.
For more information on short sales and how to navigate the process, visitwww.TedThomas.com.
ABOUT TED THOMAS – One of the nation’s premier experts on distressed real estate, including short sales and no-money-down mortgages, Ted Thomas lives in Merritt Island, FL. His websitewww.TedThomas.com has information and free videos on how to make money on property tax sales.
321-449-0040
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