Are You Facing Foreclosure?


FORECLOSURE vs SHORT SALE

Printable Foreclosure vs Short Sale Chart


The Options - When considering Short Sale vs Foreclosure, the option of Foreclosure is a home owners worst option. Consider the following:

Bankruptcy - Bankruptcy is a generally good option for Home Owners that have substantial Unsecured Debt and are unable to catch up. Chapter 7 relieves this debt, but will not cancel or Stop Foreclosure. Chapter 13 involves repayment, and therefore does not relieve debt.

Loan Modification- A Loan Modification is a great option for Home Owners that have little or no debt from missed payments, their home's value is greater than the loan amount (Equity), Their home is in relatively Good condition (No impending repair costs), and they truly love their home and it's location.

Short Sale- A Short Sale is a Great Option for Home Owners that owe more than their home is worth, their home may be in need of repairs or future repairs, they have a hardship that have/will cause difficulties in making payments, or have the burden of debt from missed payments.

Foreclosure- A Foreclosure should not be an option that Home Owners should consider. One of the above options should be considered. 

Foreclosure vs Short Sale      Loan Mod. vs Short Sale          Bankruptcy vs Short Sale

ISSUE

COST

MOVE-OUT CASH

CREDIT SCORE

CONSEQUENCES

TIME TO REBUILD

DEBT RELIEF

SUCCESS RATE

PEACE OF MIND

DELAY/STOP EVICTION



BANKRUPTCY

$2000 or More

$0

As much as -250 pts.

3 - 7 Years

CH 7- YES

CH 13- NO

VERY HIGH

Calls, Notices, & Mail STOP

Costs of BK May Increase Stress

Move-Out Timeline is Established

Delays Foreclosure 30-120 Days

BK will NOT Wipe-out First Mortgage Debt or Eliminate Foreclosure




FORECLOSURE

$0

$0

As much as -250 pts.

7 - 10 Years

Mortgage Debt- YES

N/A

CALLS, NOTICES, & MAIL Continue

Move-Out Timeline is  NOT in your Control, Eviction Time Uncertain

STRESS LEVEL VERY HIGH

Banks were Behind and Unorganized with defaulted loans and couldn't keep up with standard foreclosure timelines.

Now Banks are more organized and have the resources to Foreclose on their homes in a more timely manner.

LOAN MODIFICATION

$0 -Most Services are Free

N/A

As much as -50 pts or No Affect

0 - 2 Years

NO

VERY LOW

10% or LESS

Calls, Notices, & Mail STOP

Debt May Cause Stress

Stress of having to Move Eliminated

YES. If you Agree to the terms and make payments accordingly, This option will Stop Foreclosure.

SHORT SALE

$0 - FREE

Up To $5000

As much as -50 pts or No Affect

1 - 3 Years

Mortgage Debt - YES

2nd's & 3rd's - YES

VERY HIGH

Calls, Notices, & Mail STOP

Mortgage Debt is Relieved

Move-Out Timeline is in your Control

Delays Foreclosure 120+ Days.

 

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*Chart Provided through The Distressed Property Institute and should be used as a guide. The information presented in this website is for informational purposes only and should not be construed to be formal advice. Please consult a tax accountant and attorney before making any decisions regarding your house for legal advice and it's tax implications


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