Thursday, December 3, 2009

Should you short sell your home?

First of all what is a Short Sale?
It is when you sell your property for less than you owe the bank(s).

Why is a Short Sale better than a Foreclosure?
In most Short Sales, the bank releases you from the loan. There is no further obligation to pay. In a foreclosure, the bank can sue you for the short fall. The bank has 6 years to collect the full amount you borrowed, plus fees. As you rebuild your life and income, the bank can garnish your wages and seize money from your bank account. After a short sale, you can repair your credit within a year or two.

What does it cost?
All brokerage commission and attorney fees are paid by the bank at the closing.

Does it have to be my primary residence?
No. Any type of property can be sold through a
short sale.

Tune in tomorrow to find out why loan modification is often a waste of time...

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