Short Sale vs. Foreclosure

If you are searching for a capable real estate attorney, California, Nevada and Washington residents trust the team at BPE Law Group to help them with their real property needs. At BPE Law Group, we serve homeowners, buyers, sellers, investors, agents, brokers, managers, landlords, and tenants. Our experienced team can help you navigate real estate law issues and make wise property-related decisions.

Are you an upside-down homeowner looking for legal help as you navigate today’s complex housing market? At BPE Law, we provide comprehensive support to homeowners who are facing foreclosure or who owe more on their homes than their homes are worth. Our experienced attorneys will guide you through this difficult time and help you make sense of your options.

Options for Upside-Down Homeowners

As a homeowner facing foreclosure or an unrealistic debt burden, it’s important to know that you do have options. At BPE Law, we anticipated how the financial crunch would affect homeowners before many other firms and began offering help tailored to the needs of those homeowners. We now offer the flat fee Consult Program, which provides solid advice to homeowners for a flat, reasonable fee.

Before making a decision about how to deal with a difficult housing situation, it is essential to understand the difference between a foreclosure and a short sale.

What is Foreclosure?

Foreclosure is a process by which a lender or bank repossesses a home because the individuals who borrowed money to purchase the home are unable to pay their mortgage. A foreclosure results in the loss of the home and can result in a substantial deficiency judgment. It is best to avoid foreclosure whenever possible as being foreclosed upon can have detrimental effects on your credit and financial wellbeing.

What is A Short Sale?

During a short sale, an upside-down homeowner sells a home for less than what they owe on an outstanding loan or mortgage. In order to conduct such a sale, the homeowner must have the approval of the lender or bank. The borrower may still be hit with a deficiency judgment after a short sale. However, the amount of such judgments tends to be significantly less than the amount with which homeowners are assessed after foreclosure.

Weighing Your Options

It’s important that homeowners carefully weigh their options before deciding if they will succumb to foreclosure or if they will go through a short sale. At BPE Law, our qualified attorneys will walk you through your options and explain the repercussions of both. If you decide to pursue a short sale, we will assist you with the paperwork to do so and may be able to help with lender negotiations.

The following information applies to most homeowners who go through a foreclosure or short sale. However, it’s important to get legal advice tailored to your particular borrowing situation.

Short Sale vs. Foreclosure: Credit Score and Credit History

It’s important to understand that the option you choose when dealing with your current housing struggle will affect your credit score and your credit history. Review the information below to understand how each of your options will affect you.

Short Sale vs. Foreclosure: Fannie Mae Loans

Many homeowners who are struggling with their loans worry about whether or not they’ll be able to buy a home again. Here’s a look at how both of your options can affect future home buying.

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