Many home owners are faced with what to do about their houses, and there are a lot of choices out there. Should they allow the bank to take the property, or try and sell the property themselves first? Should they do a Deed in Lieu? Sometimes, they aren't even sure about continuing to make their payments. What will happen to their credit and their futures?

To help in making the decision, home owners have to become educated on the choices, but where can they truly find out about what's best for them? The banks have different information than the Realtors, who have different information than their accountant and their attorney. Our mission is to help the average home owner educate themselves about those choices.

Why is a short sale better than a foreclosure?

Q: What happens to my credit?
A: A Short Sale doesn't do quite as much damage to your credit as a foreclosure. A foreclosure is a long process of many missed payments, each hitting your credit very hard, and then the foreclosure itself, for a total hit against your credit for 200-300 points. A short sale can be done on a loan that is current on payments, and may hit your credit for as little as 10 points, or as much as only 100 points.

Q: How long will either affect my credit?
A: A foreclosure can affect your credit for a minimum of 3 years. A short sale could be as brief as 12-18 months.

Q: How long until I can buy another home?
A: A foreclosure will not allow you to purchase another home for another 5-7 years depending on whether it's a primary residence and government backed loan! A short sale will allow you to make a purchase as quickly as 2 years! You may also notice that on your loan applications, they never ask you about a short sale, but they do ask about foreclosure or deed in lieu.

Q: What about any deficiency on loam payoff amounts?
A: A foreclosure is probably going to result in a payoff of less than full balance on the courthouse steps, and that amount is available for the bank to chase you, and they probably will. In most cases, a short sale has the lender agree in writing to release the homeowner from any future deficiency.

Q: What about privacy?
A: A foreclosure will appear on public record and your credit report, and there is nothing you can do about that. A short sale will insure that nothing appears on public record and as Settled For Less on your credit report, and your privacy is intact.

Moreover, a short sale will not hinder your ability to get or keep a job or obtain or maintain security clearance in cases where your financial standing is important. If caught early enough, no one will know about your financial hardship, and recovery becomes more manageable.

If you have any questions about your BEST OPTION, then please email our professional staff at shanu@superhomesolutions.com.