What are the Advantages of a Short Sale over Foreclosure?
- Less of a negative impact on your FICO score.
- Ability to purchase a home quicker in the future.
- HAFA and other short lender incentives may allow you to walk away with as much as $30,000 after the short sale is completed.
- Ability to negotiate with Junior lien holders. These lien holders have a de-collateralized note with the ability to sue you for collection for years if a settlement is not negotiated prior to closing.
- You are generally able to stay in your home without making payments for a longer period of time.
- On a Oregon Residential Trust Deed ( as defined by ORS 86.770), you are generally assured that the foreclosing bank is not going to be able to pursue any deficiency.
- Home Owners Assotiation dues and assessments and Property Taxes are also generally included in a short sale settlement.
See Educational Videos 1 and 2 for further discussion.