Short Sales And Processes Involved
There are certain circumstances that are short of foreclosure of a property which can actually be beneficial to both the lender and the borrower when calculating the stakes and interests associated with a property. Using a middle ground solution such as short selling could be a way to help cover the costs of the property without having to recover the full amount. This usually involves a variety of considerations on its own that are independent of those associated with the foreclosure process.
Differences Between Foreclosure And Short Sale
The main difference between a foreclosure and a short sale is the foreclosure takes place once the process is complete and the borrower is going into default through disposition of the case. On the other hand, a short sale takes place before this occurs. It is a proactive way of skipping the foreclosure process and moving forward to a solution that is favorable to both of the case parties.
Impacts On Credit Through Short Sale
The impact of a foreclosure is going to negatively impact one's credit score whereas short sales will not bear the same severe negative consequences. Due to the fact that short selling has less of an impact a consumer will normally seek this option before a foreclosure is completed in full.
There may be some advantages when it comes to short selling instead of a foreclosure relative to each case. This is why it is paramount that one seeks counsel from an expert in this area who can prepare the strategies they need to obtain the most favorable outcome as possible.