Short Sale or Foreclosure which is worse?

Financial hardship is facing many people in todays market. How did they get in such a tough position? What led to the hardship? Each scenario is different. There are numerous reasons why people are facing the decision to do a short sale on their home or face possible foreclosure: loss of income, bad loans, overspending, poor payment habits, etc.

Let's consider a "short sale" as "pre-foreclosure." Its an option that can prevent someone from facing the embarrassment & negative impact on credit from going through a foreclosure. Can a short sale appear on your credit report? Yes. How bad is that? Depends. Depends upon whether your hardship involved past due payments or a bad loan. There are homeowners who fell behind in making their monthly PITI payment and some folks who had a lender offer them an Adjustable Rate interest-only loan. Interest only loans do major damage because your "principal" on your mortgage is not being paid. The balance owed increases year after year. Ultimately, people with these loans end up "upside down," owing more on their home than its worth; hence the need to do a short sale. By definition a short sale is a sale of real property in which the lender approves the sale of the home for less than the amount due. The lender is being "shorted." Attractive to lenders....not necessarily. In some cases short sales are more desirable to the lender than doing a foreclosure. How beneficial is a short sale to the home owner? Again, it depends. It allows the homeowner to be relieved of the debt and further financial ruin. There's always the possibility of a "deficiency judgment" being filed against the homeowners. Laws vary by state on types of instruments used to secure a mortgage on a home; trust deed or mortgage. This mere fact warrants clarity on what did you sign when you bought your home. Most people don't cover this amount of detail at the settlement. There's just a whole lot of signing. Ask questions. You can never ask enough. For this reason its best to consult with a tax professional and your lender for detailed info on the effects this could have on you. In addition to working with Realtors, your lender, tax professional, a real estate attorney for help with the process, DO YOUR OWN RESEARCH. Learn all you can, so you're equipped to cover your interests as well. This post is one in many to come on this topic. Stay tuned for more on short sales. Thanks for reading my blog & happy house hunting. As always, I'm never too busy for you or your referrals.

Homesdatabase & Coverage of Listings

Homesdatabase makes my listings SHINE.
1328 INGLESIDE AVE, BALTIMORE, MD 21207 on HomesDatabase It's an absolute pleasure to see my work displayed so nicely; they add all pictures from MLS, and best of all they share the agent's contact info (our office address and number, e-mail and cell phone). This ensures that leads and business can be routed back to the agent who works hard to develop new business. This service also increases our chances of CLOSING THE SALE.

This is just one of my listings. See "agent profile" on homesdatabase.com for my other active listings. Feel free to call with questions, if one of these homes may be a good fit for you and your family.

Thanks for reading my blog and HAPPY Househunting. Don't miss the TAX CREDIT deadline of 4/30 if you qualify as a 1st Time Buyer or Existing Owner.

Latest Listing for Marlene Rogers

Hey Fellow Bloggers and Followers,

This is my latest listing to hit the market FOR SALE. It's an AMAZINGLY renovated SPACIOUS Rancher w/ a FULL finished basement in Gwynn Oak, MD. Thats in Baltimore Co., close to Sam's Club, Pat's Pizza, M&T Bank, Bank of America, RT 40, I-695, Rt 70, Rt 29, I-95 and so much more. The advertised subdivision is Catonsville Manor; close to all, shops, restaurants, social security administration, commuter routes, etc.

This house SHINES w/ gleaming hardwoods, new kitchen, baths, nice sized rooms, a fenced backyard, walkout lower level complete with 2 separate spaces for dual uses (family room/games or office). The kitchen has 42" Maple Cherry cabinets, beautiful new floors, corian counters, a bistro set, and private driveway (could hold up to 3 cars).

All realtors see MLS # BC7262217 for details and all disclosure docs. Public openhouse scheduled for Sun 3/7/2010 from 1pm to 3 pm. Brokers Open on Fri 3/5/2010 from 1pm to 3pm. Brokers Open to feature FREE LUNCH, DRINKS & GIVEAWAYS, so drop by & check out my listing. It may be PERFECT for one of your buyers.

Electric systems was updated in 2007, along with the NEW vinyl siding and concrete walkway. Washer/Dryer conveys along with bistro set, and picnic table in backyard and radio player in kitchen. PRICED UNDER $235k, IT'S READY TO GO! Let's find the right buyer together and head to settlement before April 30, 2010.

Here's a sneak peek, via video.

Happy House Hunting & Thanks for reading my blog.