Short Sale vs Foreclosure

Obviously circumstances are different in other parts of the country, but here in the San Francisco East Bay and specifically in the Walnut Creek Real Estate market the conditions are such that working through the short sale process can be a much better course of action when compared to either a bankruptcy or a foreclosure.

One of my lenders sent me a coomparison of the different timelines required to re-enter the home ownership market and stated quite clearly that for conventional conforming loans the minimum for chapter 13 BK was 2 years from discharge/4 yrs from dismissal, foreclosure is 5 years from completion, short sale is 2 years from completion.  All of these time frames also vary by loan type and % down … and also other conditions like months behind in payments etc.
Clearly in our area under typical scenarios it is far better for the owner to do a short sale.  BTW we are also in an area where virtually all short sales being done have a no recourse clause in the short sale approval letter.  So when the short sale is completed the homeowner is free of further obligation to the bank.

Short sales should definitely be one of the first options a homeowner considers when the circumstances mean they can no longer stay in their home … and have exhausted other options with their lender like loan modifications.

Posted on March 24, 2012 at 8:42 pm
Steve Curtis | Category: Uncategorized

5 responses to “Short Sale vs Foreclosure”

  1. Good blog! I truly love how it is nice on my eyes it is. I’m wondering how I might be notified whenever a new post has been made. I’ve subscribed to your RSS which may do the trick? Have a nice day!

  2. Having a short sale attorney will help ensure the bank accepts terms that are most favorable to your loan. A better lawyer is capable to understand the legal implications of some payment agreements from lenders trying to suggest the homeowners who are trying to short sell a home.

  3. Michell says:

    Many thanks for trying to describe the terminlogy to the novices!

  4. Sayaka says:

    Attorneys can’t do any more than you. They call the same numbers and send the same pwaorperk. You’ll just end up $3500 poorer.Chase is one of the worst. Employees of Chase openly admitted that they are told to give applicants the run-around. The number of people who get mods is staggeringly low.Recently, there was a piece in the news saying close to 50% of the people trying to get into the program drop out. Do you think that they suddenly lost interest in trying to keep their homes?

  5. Well thought out post. Will visit again. Stop Bad Credit

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