The Truth about Short Sales

Short sales are nearly as commonplace as foreclosures, affecting owners of Naples homes and tons of homeowners around the country. In a nutshell, a short sale occurs when a lender accepts a payoff that’s less than the amount owed on the property. Although it’s gained traction as a better option than foreclosing, short sales do have their own caveats many homeowners fail to take into account.

Credit will not go unscathed. At the end of the day, you will still be considered a financial delinquent regardless of whether you foreclose or do a short sale. However, if you were responsible with your credit prior to a short sale, your credit won’t be affected as badly.

That unpaid balance might still need to be paid back. It’s not unusual for banks to try and get back the money they lost on the short sale. Be aware of what you’re signing and if necessary, consult an attorney or talk with the bank so you don’t end up agreeing to pay back this balance.

There is little time for recovery. For the most part foreclosures take a considerable amount of time to process before you find yourself out of your home. Short sales are relatively quick so you’ll have significantly less time to get your bearings and your finances together.