If your house is about to go into a foreclosure, you are facing quite a tribulation. Not only will you be losing your home, but you will also be losing your credit and suffering from the loss of dignity which comes with a foreclosure.
Many people facing a foreclosure are desperate to find a way out. One possible alternative is what is known as a “short sale.” Is a short sale better or worse than a foreclosure? That depends wholly on you and your personal situation.
What is a short sale? A short sale is a transaction in which your lender is agreeing to accept less for the house than what the house is worth.
A short sale isn’t always an option; it is something you have to apply for with your lender, who may or may not grant you the option.
Read more: Short Sale: What Is It?A common misconception is that if you cannot afford your mortgage your only option is to go into foreclosure and lose your home. Foreclosures can be long, stressful, and cause tremendous damage to your credit. If you want to avoid these issues, an alternative is doing a short sale.
Now you're probably wondering, what is a short sale? Essentially, short sales involve selling a property for less than what is owed on it. While short sales also have disadvantages, they are significantly better than foreclosures.
Read more: What Is A Short Sale?