Sellers often ask me what’s the difference if they do a short sale or just let the bank foreclose?  Most of the time property owner’s long term financial health is better off if they do a short sale. There are, however, some cases where the property owner’s long term financial health is better off by letting the bank foreclose or doing a bankruptcy.   

• Short Sale
• Foreclosure
• Deed in lieu of foreclosure
• Loan Modifications
• Bankruptcy

Each of these tools will have a different impact on both your short and long term financial health.  Don’t let the bank foreclose before you know the difference, and you and I talk about the details. My initial consultation is free.

A short sale occurs when you negotiate with the mortgage company to accept less than the full balance of the loan.  When you consider a short sale or foreclosure you need to consider how they will impact the following items:

 Credit History
A foreclosure will hurt your score by approximately 250 to 300 points for at least three years. In addition the loan will show on your credit report as foreclosed for 7 years.

With a short sale only the late or missed payments prior to the short sale will be reported, the points off your credit report can be far less, and if you make all you other payments on time the impact will only be 12-18 months.  Furthermore, if the lender agrees to accept nothing more than the proceeds from the sale the loan is typically reported as “settled” or paid in “full”.

• The AZ Deficiency Statute
• Bankruptcy
• Loan Modifications
• Short Sales
• Foreclosures

As a public service to AZ homeowners I am glad to offer you a free consultation.  If you take advantage of this free service and then go to speak to an attorney and tax expertyou will be armed with information that will help you get more from their consultation fee.

Jerry Raviol
West USA Realty
http://www.houseaz.com
602-695-5478