Short Sale or Foreclosure, Which is the Better Route?
Short sale or foreclosure, is there a better option? As you excel in life, you want to provide a home and stability for yourself. Imagine choosing the lot, finding a builder and having a home built to your liking and specifications. What a dream come true! Our home was built in 2001 down to the very details, cabinets, carpeting and electrical fixtures we selected. We kept the progress from dirt to finish in an album. I did all the landscaping myself and was very proud of all we accomplished in our meager self-sufficient lives. Little did we know that down the line we would be faced with the dilemma? Short sale or foreclosure and what is the better route to go. We had no idea that our future was doomed from day one since we moved in a couple of weeks after the tragic 9/11 terrorists attacks which began the onset of another depression in United States history. Short sale or foreclosure does not help when work hours got cut, bills increased, taxes were assessed, which almost killed us and as we continued to refinance for lower interest rates and inclusion of taxes and insurance, mortgage actually continued to rise.
Short sale or foreclosure did not help when our lives were based around upkeep, maintenance and working hard to keep up the home we loved and built. The neighborhood couldn’t be better and the neighbors are wonderful, warm and caring. We aren’t alone, and come to find out that so many folks like us are of the misfortunate group of people losing the biggest asset in their lives. We tried all we could to talk to the bank and beg for help when we fell on hard times. It turns out that the last thing they seem to want to do is help people to save their homes, is it best for Short sale or foreclosure. How could this make any sense? Who would think they would want all these homes dumped into their possession? Rather than helping the original owners, lowering interest rates and monthly payments, it appears they would rather take our homes away, and then we are the ones with the bad name and horrible credit. Short sale or foreclosure, is there a better option?
After getting no help from the bank about Short sale or foreclosure, we had no choice but to stop making payments while researching what we can do. We never believed in not taking care of our responsibilities but we needed help. We tried to do some research though some of the information appeared so complicated. Who could we turn to? We did not know if it was best to do Short sale or foreclosure which was the last thing we wanted to do. After contacting several realtors, we found someone who seemed to sympathize with the situation and offer to help. With the amount of folks going through the same situation, the realtors are well-versed in short sales and also have attorneys that work with them in the favor of the client losing the home.
Whether you do short sale or foreclosure, either will have an effect on your credit. Short sale seems to be the lesser of the two “evils” because you are showing a good faith in trying to find a buyer for the home rather than just walking away. You need to speak with an experienced realtor for help and more information in this area. There is no advantage to trying to sell your home on your own. In fact, in this market, homes sell way below what you knew the value to be. Your loan must be higher than that visual value because your home was worth something at some point. The buyer pays much less than that so who is responsible for the remainder of the loan between the borrowed amount and the new sale amount. Most often if you go with a realtor and attorney, the short sale will be the type where there is payment in full without pursuit of deficiency judgment, meaning that the bank accepts the offer on the home without you owing any money above the sale cost. This may not always be the case so it is important to find a very reliable realtor and attorney and ask questions. Be sure to get statistics of how many successes the attorney has dealt with, how many clients actually had to pay and why. You want someone who will fight for you about Short sale or foreclosure.
After we have made our decision to go short sale, our realtor also started looking for a place for us to live. On top of everything, we have 3 small dogs and leaving even one of them behind was not an option! It took a little more time but found a lovely, smaller condo/townhome that allowed all our pets. Our decision met with a lot of skeptics, telling us, “why move when you can stay in the home for free?” Our concern was, the longer we go without paying our mortgage, the lower our credit would go. Who would rent to us then at the end of the whole process? Which would be better for us, Short sale or foreclosure. We would end up being homeless, living in a box on the streets with 3 Chihuahuas. There is no timeline on how long the process of a short sale would be. Every two weeks the cost of the home drops by $5000 so in the long run, it is a steal . . . and buyers know this . . . so they wait. Now we have two offers on our home that is over $50000 less than what we paid for it.
It was extremely sad to leave our loving home. We cried, went through the stress and depression. It was our dream home, specifically built for us, personally landscaped and with the only enjoyment we had in our lives in the summer months, a swimming pool. The whole process of Short sale or foreclosure is not easy by any means but once you know you need to move on, prepare yourself for the next chapter in your life. This is a horrible way for things to happen but it is said that these things happen for a reason, a blessing in disguise, per se. For example, our taxes continued to go up yet income got lower. The house was turning out to be too large for two seniors; the yard was huge and needed a lot of upkeep which these old bones could not handle any longer. We would never just leave our dream home on our own; it’s meant to be ours. We essentially got forced out. It is never a good experience for anyone . . . our neighbors who moved in after us just walked away from their home. They also tried for six months to get the bank to work with them to no avail. It is happening everywhere and there is nothing good about it. Neither Short sale or foreclosure is easy but you will be fine as you approach the next chapter in your life. Of course, I did not believe so at one time but we are near the end of our lonely road, leaving our home behind and looking forward to our retirement years . . . and where we want to further move, to live out our golden years . . . hopefully somewhere without snow!