Why Short Sale is better than Foreclosure

The short sale is so common phenomenon nowadays as because people keep unpaid mortgage and lose their home on short sale to fill the short on payments to the lender.  Now to answer the question whether the short sale is better than fore closure; it is obvious that foreclosure has a huge negative affect on a borrows credit report and it is a huge financial setback and short sale is one of the ways to avoid foreclosure.

So this is very clear that short sale is far better than foreclosure. When a borrower is already 2 or 3 months delinquent to his monthly mortgage payments and the lender send him letters for the payment, the borrower should not neglect those letters and should consult with the lender and let the lender know whatever the problem the borrower has.

The fact lies that no lender or Banks want foreclosure as this is a very lengthy and costly process too. So if there is any way to work out with the lender to avoid foreclosure, it is the best. If the lender sees that the problem is genuine and the borrower is actually showing the very intent to pay and making an effort then the lender will also try to help out something to the borrower. Now the short sale is not the only way to keep away from foreclosure but it is one of the ways that may help the borrower to avoid foreclosure.

A short sale process is really hectic and a real set back as the borrower is losing his dream house and also he may have to pay the deficiency amount too but the thing is that the person can start afresh and as it is told before it does not hurt the credit report as much as foreclosure. So if he can get the finance on track and improve the credit score then he may get a new mortgage too within fairly short period of time.

If there is any assistance I can provide you in regards to financing, or give you some suggestions on the best realtors to utilize on Short Sales, give me a call at 314-744-7806, or click on the link below:

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