If you realize that foreclosure is imminent you should learn about your options rather than simply wait for the reaper to take home.
Today, you have options when it comes to foreclosure. You can negotiate with the lender and try to keep your home or you can consider a short sale. Some people will tell you that a short sale will save your credit, while others say that a short sale or foreclosure will ruin your credit. If you look at what a short sale, I do not see how you can ruin your credit.
A short sale is an agreement between you and the lender to take less than the amount owed to pay off your loan. Of course, if you are behind on your mortgage payment, this will be on your credit report; however, this does not necessarily have to be considered as a negative factor. Only it shows that you were late on your mortgage, but once the loan is paid the lending company will have to report the loan paid. A negative delay in payment is not as bad as a foreclosure.
A delay in payment, of course, looks bad on your credit report, but if you are positive factors as well, the negative not look so bad. A delay in payment, certainly will not lower your score put you in the group of individual’s bad credit rating.
With the list of pros and cons then you should be able to make an informed decision about whether to go to a route short sale or foreclosure route.
Advantages of short sales
Preserve their self-respect he sold his house; you will not suffer the embarrassment of foreclosure.
Cons of short sales
Waiting to hear from the lending company if they accept or deny your short sale can be annoying. The lending company must see all their personal records including assets, liabilities, bank accounts and tax returns, to name a few to learn if you have a financial hardship. Buyers must see your house, so you must keep your home ready for potential buyers until an offer received is made Hotel & bull; The bank does not have to accept a short sale offer.
Pros for foreclosure
No more mortgage payments. The foreclosure process takes a long time, that is, the house is yours until the foreclosure is complete. You do not have to keep your house available for potential buyers.
The lending company may publish a notice of public sale in the house. A foreclosure will remain on your credit report for 10 years.