Short Sale SellersLife After a Short Sale – What Now?
Short sales are just about everywhere…it seems like you can’t get away from them. Many seller, loan officers and Realtors say they know a lot about short sales, but don’t know how to the short sale process works or even why a short sale is a better alternative to a foreclosure.
Why is a short sale better than a foreclosure? A short sale will enable to the seller to purchase a home about 2 years after a short sale completion while a foreclosure will make you wait 5 years till you can purchase a home. In addition, short sales are better for the lender or bank holding the mortgage as it will keep the house occupied, with water and electricity still on and also keep the lawn mowed (half the time). Plus the bank will lose a lot less money through a short sale. Foreclosure are VERY expensive.
But what happens after a short sale? What are the seller’s options? Where do they live?
Depending on your unique situation, your credit may be shot or you may have only a few blemishes from your previous mortgage. The most severe circumstances will leave the seller a renter for a short time while those issues become worked out. Usually a landlord will require a few months mortgage as a security deposit. And if you don’t want to be renter, there’s always the lease-option or you could live with family or friends.
If you file for bankruptcy or short sold your house , a good credit repair company or legal firm can help you get things back in order and ready to buy in 2 years if possible. It should be top priority to get your credit back into line. The sooner your credit is back to normal, the sooner you’ll be able to get purchase a home.