Is A Short Sale Still a Good Idea?

April 7, 2011

General Short Sale Info

I get asked all the time about the short sale process. Is it a good idea? How bad does it damage your credit? Why does it take so long? While the process can be extremely length at times, overall it is still a good idea for those in a specific situation. We all know that market values on the majority of homes has dropped and in some cases quite significantly. If you are willing to take a loss on your home and want out of your current situation then a short sale is a great idea.

It will have an impact on your credit report but letting your lender foreclose on you would be worse. If you are in the position where you would request a short sale from your lender you might not need to be worrying too much about your credit. Chances are it is already somewhat damaged from late payments from your financial burdens. One of the requirements lenders look at is financial stress when considering your request for a short sale.

The length of the process can be cumbersome for most people. The name of the process is a bit of an oxymoron as there is nothing short about the process.  The good news is that congress is attempting to push through some legislation that would speed up the process. The length can be due to a backlog on your lenders end and then they may want to evaluate your request in several areas. Are you financially stressed to the point where they feel it would be worth taking a loss? Do you have a job? Gone through a divorce? Those things would help you in your request. Remember though, your lender does not have to honor your request but most will right now due to not wanting to take on another home.

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