Q: Today, many homeowners are faced with a difficult question – Is foreclosure an option or would it be better if I tried to do a short sale?
A: The answer is not simple and will vary from homeowner to homeowner. Our advice is to always seek legal and or financial advice first. Some real estate attorneys will charge only a minimum fee to review loan documents and offer a preliminary assessment. Real estate agents trained as short sale resources can provide the name of at least one experienced real estate attorney who can help. There are many factors to be considered in this decision process – credit impact, IRS tax implications, liability issues and more. A homeowner faced with this dilemma may want to consider the following: Foreclosure means the lender who loaned the money to the homeowner, has taken over ownership of the home and usually, this is a final step in the process. A short sale on the other hand, is intended to be a PRE-FORECLOSURE option for the homeowner and if the short sale process is not successful, then the homeowner may still have the foreclosure as a remaining alternative. Foreclosure or short sale, it is a complex legal and financial matter to understand and get through. Words of hope: Many homeowners do and do so successfully! The most IMPORTANT thing for a homeowner to remember is to seek the assistance of a knowledgeable real estate professional early on to help guide you, before you are forced by circumstances to make either decision: Foreclosure or Short Sale?