Foreclosure vs Short Sale
Sometimes circumstances arise that totally change a family's finances, causing them to stop making their mortgage payments. Generally after 60 days of delinquency the creditor will start their process to collect their funds. They will start threatening to foreclose on the property. Foreclosure means that the lender may seize the property, evict the owner and sell the home as stipulated in the contract.
An alternative to foreclosure is a short sale. A short sale may be used when the borrower is unable to make mortgage payments or owes more than the home's worth. The lender must agree to complete the short sale.
The two processes have different consequences that should be considered when deciding on which action to take. Below is a chart which lists benefits of a short sale vs a foreclosure in various areas of the process.
If you have any questions or are interested in the short sale process, call Greg (401-230-9004) at QSPS Housing Solutions for more information.
An alternative to foreclosure is a short sale. A short sale may be used when the borrower is unable to make mortgage payments or owes more than the home's worth. The lender must agree to complete the short sale.
The two processes have different consequences that should be considered when deciding on which action to take. Below is a chart which lists benefits of a short sale vs a foreclosure in various areas of the process.
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