Short Sale vs. Foreclosure: What’s the Difference?
When a home is sold through a short sale, the proceeds from the sale are used to pay off the mortgage. A foreclosure occurs when a homeowner fails to make their mortgage payments and the lender repossesses the home. There are a few key differences between a short sale and foreclosure that potential homeowners should be aware of:
A foreclosure will stay on your credit report for up to seven years, while a short sale will only stay on your credit report for two years. A foreclosure will also result in a deficiency judgment, which is when the lender sues the borrower for the remaining balance of the loan. A short sale will not result in a deficiency judgment.
Lastly, if you are facing foreclosure, you may be able to negotiate with your lender to do a short sale instead. This is not an option if you are already in foreclosure proceedings.
The Law Offices of Omar Zambrano has helped thousands of the people and businesses in the past to get out of debt and start over.
Our goal is to help you find a fresh start FAST!
Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706