Friday, October 15, 2021

Benefits of a Short Sale Instead of Foreclosure

If you are facing foreclosure after getting far behind on your mortgage payments, you might be considering certain options to avoid foreclosure even if you cannot remain in your property. While your ultimate goal at the start might have been a foreclosure defense option that allowed you to get back on track with your mortgage payments, you may have reached the point at which you are realizing that you will need to move out of your home and find a new place to live. In such situations, you might be asking yourself if there is really any benefit to going through a process to avoid foreclosure such as a short sale or a deed in lieu of foreclosure. In other words, you might be thinking it could make more sense to simply allow the foreclosure to happen. Our Oak Park foreclosure defense lawyers want to explain the many and varied benefits of a short sale instead of a foreclosure.

You Can be Eligible for Another Mortgage Much Sooner

By going through a short sale instead of allowing the foreclosure process to continue, you can be eligible for another mortgage much sooner. Having a foreclosure on your credit can be extremely damaging, and you should take steps as soon as possible to avoid it. As the Federal Trade Commission (FTC) explains, if your home goes into foreclosure, you will likely need to wait for seven years before you are eligible for another mortgage. However, if you have a short sale instead, you may be able to qualify for a mortgage again in just five years.

Shorts Sales Do Not Affect Your Credit as Much as Foreclosures

Short sales are much less damaging to your credit than foreclosures, which means you will be able to rebuild your credit much faster with a short sale instead of a foreclosure. Indeed, as we noted above, you may be able to get another mortgage in as little as two years if you work with a lawyer on a short sale instead of simply letting the foreclosure happen.

You Will Have More Control of the Process

Learning that your home is going into foreclosure can be extremely stressful, and most homeowners feel completely out of control in the process. By choosing to move forward with a short sale and avoiding foreclosure, you can also ensure that you have more control over the process. Although you will still need to work with a lawyer to engage in negotiations and to ensure that all documents are appropriately filled out and filed, you will not need to go through the more emotionally arduous process of a foreclosure.

It is important to recognize that having some control in the short sale process also means that you can work with your lawyer to ensure that the bank waives plans for a deficiency judgment so that you will be free and clear once the house sells.

Contact an Oak Park Short Sale Lawyer Today

If you have questions about short sales, or if you need assistance with foreclosure defense in Illinois, one of our dedicated Oak Park foreclosure defense attorneys can speak with you about the benefits of short sales. Contact the Emerson Law Firm today to learn more about how we can assist you.

See Related Blog Posts:

Short Sale or Chapter 7 Bankruptcy?

Five Things to Know About Short Sales

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