Short Sale Benefits

• Avoid foreclosure
• Avoid the lengthy foreclosure process. It may take many months for the lender to process, and the whole time the homeowner is constantly looking over his/her shoulder wondering when the locks on the door may be changed
• Might be able to prevent lender from suing homeowner for balance owed, known as the deficiency, in the future
• Avoid the stigma of foreclosure with friends, family, colleagues and on records
• Less of a “hit” on borrower’s credit score
• If HAFA is pursued–$3,000 incentive to seller
• Some lenders are independently offering financial incentives to cooperating homeowners
• Easier to get credit to purchase items or apply for a mortgage in the future
• Less uncertainty and faster than waiting for trustee sale to happen
• Not as bad a hit for credit background checks due to insurance, loans, background checks, security checks, rental applications
• If you don’t miss any payments on your mortgage, your credit is affected even less
• As far the public tax records go, the sale is recorded as (and appears to be) a regular sale (versus a foreclosure)