Wichita Short Sale Vs. Foreclosure: HUGE Difference!
- A Bruise is Better than a Break!
Short Sale Brings Less Pain
Wichita homeowners overwhelmed by their mortgages & behind in payments find themselves in a seriously scary situation. It usually feels likes there’s no where to turn. Most REALTORS & mortage lendors aren’t sure how to help either & can end up innocently giving the wrong advice to home owners already in distress. These professionals & home owners can find help by getting connected to proven short sales experts who successfully stop the “beat down” of a Foreclosure.
Basically, unless there’s a way to stay in the home through a successful & vary rare loan modification or other financial solution…the homeowner decides to ”walk away” & move out, starting over some where else. But how to “walk away” is key! There is a HUGE difference between the 2 options & a Short Sale is the way to go if at all possible.
A Foreclosure is a Knock out punch
Often referred to as “letting the bank take it” a foreclosure is much more devastating to the future of the homeowner than a Short Sale because the credit score hits the matt hard & stays down longer! The damage to a credit score can be a massive hit of over 300-380 points! This truely is ”walking away” & unfortunately it’s a big BLOW to the home owner making it harder to rent, buy cars in the future, etc. Anything driven by credit like the cost of insurance & deposits for utilities, will go up… further hurting the homeowner for years to come. The pain is going to stick around as the damage lingers longer on the credit report.
Short Sale bruise fades away faster
A Short Sale is basically a “short pay”…the homeowner pays less than what is owed as part of selling the house to someone else. The goal is to find a Buyer for the home first. Next negotiate the sales price (& the final payoff) with the Seller’s lein holders resulting in “the bank” reporting “paid as agreed” on the Seller’s credit report & “waiving the defiency” or shortage that they were originally owed. This will bruise a credit score by 60-80 points according to Wacchovia & it’s a bruise the can fade away quickly compared to recovering from a Bank Foreclosure.
A Short Sale is the responsible route to take for both the homeowner & the bank as it resolves the situation through cooperation. A Short Sale saves the bank lots of money compared to foreclosing which gets drawn out for months, & can cost the bank $30,000 or more before it’s done.
Short Sales Save Face
To most people a Short Sale adds insult to injury as the property can sit vacant for months after a Foreclosure & it’s completely more evident to the neighborhood that the home owner suffered a financial hardship resulting in “losing their home”. A Short Sale looks primarily like any other home that gets put up for sale…it is usually a relatively discreet process.
Timing is key!
The sooner a home owner gets in touch with or is referred to the right REALTOR specialist the better the chances for success. Don’t give up and assume it’s too late as only an experienced Short Sale warrior can really exhaust the chances & tell for sure. It’s important that home owners get the right advice & 99% of the time it’s not going to come from the Bank. And Realtors do not leave it up to the homeowner to know what to do (i.e. doing all of the communicating with the bank!) or to tell you how much time they have left…refer them to a Short Sale specialist right away or at least call one & ask questions. The Short Sale process can be a very time consuming & frustrating process but the home owner will reap the benefits of getting a successful “Short” vs. “being foreclosed on”. Even after a “Sherriff’s Sale”…the home owner in our area typically has 90 days to get a Short Sale approved!
Want to know more about avoiding foreclosure as a home owner or getting help for your client? Talk to Ambrose Team today…316-773-SOLD.
Ambrose Team, Inc. 316.773.SOLD
Founder & Assoc. Broker: Keller Williams Hometown Partners LLC
316.807.5079
kambrose@kw.com
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