Ann Arbor
Advantages Of Short Sales - The Sellers Prospective
Posted by MARK Z. Home Selling Team on Monday, July 23rd, 2012 at 1:47pm.
A More Honorable Exit Of A Home
When a foreclosure occurs, an official will come to the property and ask the owner to vacate the property immediately. Contrary to a foreclosure, in the event of a short sale the owner will know a closing date and is able to prepare to move. The homeowners family, friends, and neighbors may not even know of the financial difficulties.
Avoiding A Deficiency Judgement
The difference between the loan amount and the selling price of a home is known as a deficiency judgement. Banks very often will legally seek the difference when they take possession of the foreclosed home. In many case banks will release the seller of this responsibility when a short sale is completed.
Less Damaging To A Credit Report
Rebuilding a credit score can be a much quicker process following a short sale. A foreclosure will be a far more lengthy process to recover from.
A Hastier Return To Homeownership
If a short sale is completed, it is possible to approve for another mortgage in 2-4 years. This is much more appealing than the 5-7 years it may take if the property is foreclosed upon.
Possible Tax Relief
The Mortgage Forgiveness Relief Act of 2007 is currently in legislation until the end of the year. This act promises that homeowners who received principal reductions or other forms of debt forgiveness on their primary residences do not have to pay taxes on the amount forgiven.
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