Short Sale or Foreclosure?

This year, 2010, of the total sales in Arroyo Grande and Pismo Beach, one half were either homes that were bank owned (REOs) or short sales (pre-foreclosure). And Half of those sales were foreclosures, the very last option for a home owner. 

Selling your home as a short sale is the better option. Below are four good reasons why.


1) After a short sale, if you were current on your mortgage payment; you may qualify immediately for a new home loan. After a foreclosure, the time period to buy another home is from 5 to 7 years. 


2) Short sales are seldom reported to the credit bureaus,
but foreclosures are always reported.


3) Normally, a lender will not file a deficiency judgment after a short sale, but one is always filed after a foreclosure. The foreclosed home owner can be liable for thousands of
dollars until the judgment is paid to the lender.


4) New loan applications require disclosure of a previous foreclosed home.  The application does not inquire about previous homes involving short sales. Ref: About.com


Please give me a call if you have any questions about short sales.


805-471-0828 or Toll Free 877-471-0828 http://dnorwood.com David@dnorwood.com