For many people, the decision between foreclosure vs. short sale is a tough one – and one factor that weighs on people’s minds is how long before they can buy a home again. This chart explains, based on different types of loans, the timeline before you can qualify for a mortgage again after a short sale, foreclosure or bankruptcy. However, let that not be the only factor that goes into the decision of how to handle that lis pendens notice…
What surprised me about the chart above is that in some scenarios the wait time between a foreclosure and a short sale is not that different. Recently I was speaking with a real estate attorney who consults with many of my short sale clients about this and he told me that his opinion on which way homeowners should go when faced with impending foreclosure has changed in the last several years. Because banks often forgive the deficiency balance in a short sale, which is not necessarily forgiven with a deed-in-lieu of foreclosure, or with a foreclosure, he now feels short sales are the safest and best bet for many homeowners. But don’t take my word for it. You can speak to him yourself. If you are considering a short sale, please contact us for more information and we can also help you obtain a free legal consultation.
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