Many people think that once they find their home, everything will work out from there; however many people are finding that is not always the case. In many cases people do not know what life will bring. Unfortunately many homeowners are finding themselves in financial ruins and not being able to pay their mortgage at all. There are many different reasons that this situation may have occurred. Many times a loss of income is the reason people are not able to make their mortgage payments. There are options available to them so they do not have to go through the dreaded foreclosure process or get evicted from their homes.
Some people first try to sell their homes in the typical market to be able to make a considerable profit. They eventually come to the realization that the housing market has gone down so considerably that they will not be able to get the same money back.
Many Realtors suggest that when homeowners find themselves in a stressful situation that causes them to no longer be able to make their mortgage payments that a short sale is the best option. When homeowners do a short sale they sell their homes at a lower price than what is due on their mortgage. The lender agrees to accept that amount to cover their loan payment. This price can be way below market value.
A short sale helps a homeowner because it helps their credit because they will no longer be neglecting their mortgage payments. They will not have to do a foreclosure under this process and the stress is gone. Many people are benefiting from the option of the short sale.
A short sale has its benefits and drawbacks; however, it is much better than having a foreclosure on a credit report. A foreclosure not only stays on the credit file for seven to ten years, it also brings the credit score down by one hundred points. A short sale on average only affects the score by forty-five points. So a homeowners best choice is to do the short sale and start over.