Foreclosures and short sales are both financial options if you are financially distressed in Tennessee. However, each process negatively impacts your credit score, tax return and the possibility of getting a loan in the future differs. At Ben Sissman, Attorney at Law, we often help clients develop a foreclosure defense strategy and keep their homes.
According to Realtor.com, a short sale occurs when the mortgage balance on a property is below its sale price or market value. It is up to the lender whether they accept this type of sale. If they do, it means they get only a portion of the loan balance. However, if you wish to walk away from an underwater home, this may be a viable option as you have no further liability once the sale closes.
In a foreclosure situation, you must vacate the premises if you cannot pay the balance owed or sell your home. The mortgage holder repossesses the property and may auction it off or sell it to a third party. Once the foreclosure is complete, it stays on your credit for seven years. It may be five years before you can buy another home.
Some lenders have programs that help homeowners keep the property by modifying the payment schedule. However, if you have tried this option and been unsuccessful, an attorney can help you avoid making common mistakes and ensure the mortgage company does not come after you in the future. You may have several options, depending on your particular situation, including staying in your home. Visit our webpage for more information on this topic.