Estate House QTA

If you have a seller that is thinking about letting a home go into foreclosure you may want to explain some of the benefits of a short sale.

For one thing if the owner opts for a short sale and not a foreclosure, the owner is in control of the sale, and not the bank if it goes to foreclosure. If you sell the home you can spare yourself the social stigma of the bank foreclosing on your home. The sale of the place will be handled like any other sale.

Sellers who are not in danger of foreclosure and are current on their payments can also make a short sale and sell the home fast if for some reason they need cash for other reasons or can see the end of their home ownership coming because of job loss or other factors.

The main drawback of a short sale is that it can show up on your credit report and drop your FICO score from fifty to 130 points. The short sale often shows up as a comment such as “settled for less” or paid in full for less than agreed. Slightly less painful to your credit.

If your seller allows a foreclosure, he or she may not be able to buy a home for another five years at the very least but the wait is usually seven years. If they go for a short sell they will be able to buy another home as soon as they can repair their credit scoring.