Are You Facing Foreclosure?
FORECLOSURE vs SHORT SALE
Printable Foreclosure vs Short Sale Chart
The Options - When considering Short Sale vs Foreclosure, the option of Foreclosure is a home owners worst option. Consider the following:
Bankruptcy - Bankruptcy is a generally good option for Home Owners that have substantial Unsecured Debt and are unable to catch up. Chapter 7 relieves this debt, but will not cancel or Stop Foreclosure. Chapter 13 involves repayment, and therefore does not relieve debt.
Loan Modification- A Loan Modification is a great option for Home Owners that have little or no debt from missed payments, their home's value is greater than the loan amount (Equity), Their home is in relatively Good condition (No impending repair costs), and they truly love their home and it's location.
Short Sale- A Short Sale is a Great Option for Home Owners that owe more than their home is worth, their home may be in need of repairs or future repairs, they have a hardship that have/will cause difficulties in making payments, or have the burden of debt from missed payments.
Foreclosure- A Foreclosure should not be an option that Home Owners should consider. One of the above options should be considered.
Foreclosure vs Short Sale Loan Mod. vs Short Sale Bankruptcy vs Short Sale
|
ISSUE |
COST |
MOVE-OUT CASH |
CREDIT SCORE CONSEQUENCES |
TIME TO REBUILD |
DEBT RELIEF |
SUCCESS RATE |
PEACE OF MIND |
DELAY/STOP EVICTION |
|
BANKRUPTCY |
$2000 or More |
$0 |
As much as -250 pts. |
3 - 7 Years |
CH 7- YES CH 13- NO |
VERY HIGH |
Calls, Notices, & Mail STOP Costs of BK May Increase Stress Move-Out Timeline is Established |
Delays Foreclosure 30-120 Days BK will NOT Wipe-out First Mortgage Debt or Eliminate Foreclosure |
|
FORECLOSURE |
$0 |
$0 |
As much as -250 pts. |
7 - 10 Years |
Mortgage Debt- YES |
N/A |
CALLS, NOTICES, & MAIL Continue Move-Out Timeline is NOT in your Control, Eviction Time Uncertain STRESS LEVEL VERY HIGH |
Banks were Behind and Unorganized with defaulted loans and couldn't keep up with standard foreclosure timelines. Now Banks are more organized and have the resources to Foreclose on their homes in a more timely manner. |
|
LOAN MODIFICATION |
$0 -Most Services are Free |
N/A |
As much as -50 pts or No Affect |
0 - 2 Years |
NO |
VERY LOW 10% or LESS |
Calls, Notices, & Mail STOP Debt May Cause Stress Stress of having to Move Eliminated |
YES. If you Agree to the terms and make payments accordingly, This option will Stop Foreclosure. |
|
SHORT SALE |
$0 - FREE |
Up To $5000 |
As much as -50 pts or No Affect |
1 - 3 Years |
Mortgage Debt - YES 2nd's & 3rd's - YES |
VERY HIGH |
Calls, Notices, & Mail STOP Mortgage Debt is Relieved Move-Out Timeline is in your Control |
Delays Foreclosure 120+ Days. |
|
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*Chart Provided through The Distressed Property Institute and should be used as a guide. The information presented in this website is for informational purposes only and should not be construed to be formal advice. Please consult a tax accountant and attorney before making any decisions regarding your house for legal advice and it's tax implications
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