Why Do a Short Sale: Effects on Credit and Buying a Home in The Future

WHY DO A SHORT SALE

I often get the question from sellers who are upside down in their house, should we short sell our house, or just walk away? We all have seen it affect our neighborhood, or know of someone facing financial hardship. Please refer them to me and I will have a short sale expert help them with this difficult decision.

A short sale on your home means that a person owes more on their home than it is appraised for. The bank may make a concession and accept an offer on your house for less than the amount owed.

About.com offers many resources on why a homeowner should do a short sale rather than have their house foreclosed upon. Those reasons include being able to buy a house sooner than if they were to foreclose on their house and having it remain on your credit for a shorter period of time. Circumstances differ as to each seller depending on how delinquent they are on their payments, so please contact your legal or tax advisor.

Check out About.com and its valuable resources on the short sales, credit affects, and rationale of why you should do a short sale.

http://homebuying.about.com/od/shortsale/a/052208SScredit.htm