Why is a Short Sale on Your Home a Good Idea?

A short sale on your home is a good idea when you are facing foreclosure and when you owe more on your home than what it is worth.

A foreclosure is one of the worst things you can possibly have on your credit. It is even worse than bankruptcy. How is that so you ask? Both a bankruptcy and a foreclosure stay on your credit for seven to ten years; however, it is a lot easier to start re-building credit and acquiring new loans after bankruptcy than after foreclosure.

In fact, it is nearly impossible to get a new loan, period, after foreclosure. If you can't pay for your home, then potential new creditors don't believe you can pay for anything - a credit card, car loan, etc. And they will not lend you money. After a bankruptcy, one can get a new loan (credit card/auto loan) within 6 months of bankruptcy and can buy a new home after two years out of bankruptcy.

A short sale is better on your credit than a foreclosure. It will stay on your credit for about three years, and it shows the banks that you made an attempt to make good on your loan. Instead of just leaving the home to the bank, it shows you were pro-active and responsible.

If you owe more for your home that what it is worth, it is also a good idea to sell your home as a short sale. Obviously, if you can stay in your home for a good five to ten years, the value of your home might go up, so you should probably wait it out. But if you can't wait for the value to increase and you need to sell, a short sale is a good idea.

Usually people who need to sell their home in a short sale must do so because of an ARM (bad loan), divorce, medical bills, death in the family, job re-location and loss of job.

If you find yourself needing to sell your home in a short sale or if you want to learn more about how you can help people who need to sell their home, email me at simplehbb@gmail.com or call our toll free number at 1-888-217-5791 (leave your name, phone number and email address and we'll call you back within 24-48 hours).