When you contact Providence Short Sale Agents, you may have questions on whether you should choose short sales or foreclosure. Here are a few key differences:
If you allow your home to go into foreclosure, your credit will be negatively impacted for at least seven years. You may get denied for any type of loan until the foreclosure has been dropped off, including credit cards, car loans, even your job application. If our Providence Short Sale Agents assist you, your credit will be impacted, just not as severely.
In the case of a short sale, you are still in control of the sale. You can choose one of our helpful and friendly Providence Short Sale Agents to walk you through the process. However, if your home is foreclosed upon, the bank has the right to do as it wishes with your home. Foreclosure is a forfeit of any control over your home.
Calling Providence Short Sale Agents may help eradicate any future payments related to your home. The Mortgage Debt Relief Act is in place to assist those who decide to short sale by exempting your loaner from claiming their loss. Once you allow your home to become foreclosed, your lender is mandated to report the loss to the IRS, who will in turn charge you for it.
You are already aware choosing foreclosure will impact your credit. This extends just a step further - it will be increasingly difficult to purchase a home within the next seven to ten years. With a short sale, you could buy a home with a Fannie Mae backed mortgage in just two years, and a FHA loan in three.
Providence short sale agents can attest- the short sale process can be a lengthy one. The benefit of a longer process is that you may stay in your home for as long as it takes to sell it. During this period, you can look for other housing options and adjust to the idea of moving. If you allow your home to be foreclosed upon, the bank has the right to evict you in as little as five days.
This brief list of foreclosure and short sales differences may help you and your family decide how to proceed. Our seasoned Providence Short Sale Agents would be happy to assist you in your decision-making process. Call Joy and her team of Providence Short Sale Agents today for real answers to all of your questions.
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