Struggling to pay your mortgage and realizing that you could soon be facing foreclosure is an extremely difficult experience for any homeowner. Indeed, it can be devastating to recognize that you do not have options for staying in your home given the amount of debt you owe. There are a variety of options that could be available to you to avoid foreclosure, including a short sale. Our Oak Park foreclosure defense attorneys routinely help struggling homeowners with short sales in order to stop a foreclosure from happening, and we can provide you with more information about how a short sale might benefit you. In the meantime, the following are the top five advantages of a short sale.
1. Avoid Having a Foreclosure on Your Credit
One of the most obvious advantages of doing a short sale instead of foreclosure is that you will not have a foreclosure on your credit record or credit report. When a foreclosure happens, a consumer’s credit takes a significant hit, and it can be difficult to rebuild credit. While a short sale will still affect your credit, it will affect your credit significantly less.
2. You Will Have Greater Control Over the Process Than You Would in a Foreclosure
When you do a short sale, you will be able to have more control over the process and will be able to make plans to sell the home and to move into a new one.
3. You Can be Eligible for Another Mortgage Sooner
When a judicial foreclosure occurs, you may need to wait for up to eight years before you are eligible to get a mortgage. With a short sale, you can be eligible for a mortgage again on a much shorter timeline. Depending upon the type of loan you want to get, you may need to wait anywhere from two to four years before you are eligible again, according to Bankrate. That timeline is significantly shorter than if you lose your home to foreclosure.
4. You May Save Money
The costs associated with foreclosure can be high. According to Mortgage News Daily, the Joint Economic Committee of Congress estimates that the average cost of foreclosure to a homeowner is more than $7,000, while a short sale will incur minimal costs.
5. Less Stressful Than a Foreclosure
Given that you will have more control in a short sale than a foreclosure, and that you can begin rebuilding your credit in order to be eligible again relatively soon for a mortgage, a short sale is generally less stressful for the homeowner than a foreclosure.
Contact an Oak Park Foreclosure Defense Lawyer Today
If you are behind on mortgage payments and you are facing the possibility of foreclosure, you should get in touch with an Oak Park foreclosure defense attorney who can provide you with more information about your options. We can help you through the short sale process, which can be complicated, and we can also provide you with information about other foreclosure defense options, such as a deed in lieu of foreclosure. Contact the Emerson Law Firm to learn more about how we can assist you.
See Related Blog Posts:
Does Bankruptcy Always Stop Foreclosure?
How Can I Do a Short Sale?