Short Sales verses Forclosures

Short Sales

• Negotiated Settlement
• No Attorney fee
• sellers credit bruised
• Lien negotiated

Forclosure

• Court settlement
• Big Attorney fees
• No peace of mind
• Buy  in 10 years again
• All Liens extinguished

Lender wins with a short sale.

•  Proceeds within 24 hours of closing.
• Reduced non performing inventory.
• Full blown apprasial/ BPO

Seller wins

Possible 1099 for forgiveness of debts. If they dont have assets they dont pay tax. They have to be broke! If seller owes more then 1 property this is not the best thing to do. If the seller has little or no equity they can walk away from the property with the help of a good realtor.  The seller will be left with credit that can be repaired in 2 years verses 7 with the forclosure.  Its a win win for everyone seller- buyer- bank.  The bank will also end up with more money in their pocket so they are happy to accept a short sale offer.  Agent is happy they have motivated sellers a property that is below market value and buyers that are happy to get a deal.