The damaging effect on your credit of a short sale is a LOT LESS than a foreclosure.
You can be released from the liability of your debt on your home.
Rebuilding your credit with a short sale is easier than a foreclosure.
Short Sale Definition: A short sale is when
a lender or group of lenders accepts less money than what is owed
on a mortgage or mortgages and as a payoff for the mortgage releases
the borrower from further liability.
Why would a bank accept less than they are owed?
A lender has no internal facilities to maintain & manage vacant homes.
The longer the mortgage remains unpaid or foreclosed on and taken
back by the bank, the more out of pocket cash expenses the lender
incurs, such as real estate taxes, insurance, legal fees, maintenance,
and others.
Do I qualify for a short sale?
If you owe more on your home than it’s worth.
You cannot really pay for this difference when selling your home.
