Short Sale or Foreclosure.......How a seller decides........

Posted @ Mar. 18 2011 02:14PM by donnas - home-garden

In Florida, when a homeowner cannot make his/her mortgage payments and does nothing, the foreclosure case can result in a personal judgment against the homeowner that lasts for 20 years. The judgment is used to pay back the bank and forces some homeowners to file bankruptcy. That is why it is important to evaluate your options. Because most banks will not give a principle balance reductions, most homeowners who owe more to the bank than their home is worth opt for the short sale. Short sales occur when the homeowner sells their property for fair market value. In some cases, the bank will forgive the homeowner and give them $3,000.00 to relocate. In a short sale, the homeowner’s credit is less affected-depending on how many payments are missed-and provides an alternative to a costly judgment that can affect a homeowner for years. Short sales are taking a lot less time-typically, a homeowner can obtain short sale approval within (60) days of submitting the contract and financial documents to their lender.

Jim Soda /  sodasells@gmail.com

Anne Weintraub /  aweintraub@bandweintraub.com