Foreclosure or Short Sale--What's the Difference?
Losing your home to foreclosure is a painful event that continues to haunt you long after your home has gone back to the bank. Your credit score is severely affected and, regrettably, most people cannot be sure that they will remain safe from foreclosure because they haven't foreseen the "unexpected." Such events as serious illness, a major accident, divorce or job loss can happen to anyone at anytime. It’s a good idea to understand the available alternatives should such devistating events occur in your life. 
So, what IS the difference between a foreclosure and a short sale? Simply put, the homeowner still owns the property with a short sale; when a property has been foreclosed upon, the BANK/LENDER owns it. The foreclosure process is quite expensive for the banks/lenders so, they generally PREFER you short sell the property than for them to proceed with a foreclosure. With a short sale, the owner still lives in the property and maintains it as normal--with a foreclosure, the distressed property is left vacant and is generally in ill-repair. 
A short sale MUST be listed in your local MLS with a Realtor®. Your short sale specialist works to negotiate the short sale FOR you and follow the process all the way to Closing on your property with you. The bank/lender MUST reach an agreement with you and your buyer as to price and other contractural agreements as well as a Closing date. Again, your short sale specialist handles the communication of this entire process for YOU.
As well, with a short sale, the damage to your credit is far less extensive as with a foreclosure. A short sale can be erased from your credit in as short a period as 6 months and can take up to 2 years as opposed to at least 7 years with a foreclosure. The ability to get a handle on your finances early in the game is imperative--contacting your Charlotte NC short sale specialist can save you more than you know. You are able to reside in the property until the deal is Closed--a far more 'respectable' alternative to being evicted when the bank forecloses on the property.
Foreclosure is, by far, the worst available option for you. The result of a foreclosure is the lender taking ownership of your home/property. You will not only lose your property but, the bank/lender can obtain a judgment against you for the amount that you owe plus the costs for the foreclosure process that the bank/lender incurs. Your credit will be ruined for many years to come, further worsening your financial situation. This makes obtaining any credit, incredibly difficult. There is absolutely nothing positive about foreclosure. Avoid foreclosure at all costs.
Consider a short sale rather than allowing a foreclosure on your property. A short sale is an option for property owners with serious financial issues. In the case of a short sale, one sells their home for less than what they owe the bank/lender. Some lenders will not agree to a short sale however, most prefer it to going through the lending institution's expense of a foreclosure. This is a time that you MUST have someone working for you that KNOWS short sales. Experts advise pursuing a short the minute you realize that you are in trouble. The longer you wait and the farther behind in your mortgage that you get, the less likely your bank/lender is willing to allow a short sale.
Any option is better than foreclosure! Do everything that you can before foreclosure occurs and do it as quickly as you possibly can. DO NOT WAIT! Consider a short sale and check with a short sale specialist before foreclosure is the only option remaining for you.
Don’t do this alone! Having someone to work on your behalf is priceless. Facing foreclosure is horrifying and going it alone is one of the most overwhelming experiences you can face in life. A short sale specialist is imperative in getting through this process with both dignity and composure. Don't let pride stand in your way of contacting a short sale specialist--this is our JOB and we do understand. Let us do our job and help you through this proess so that you can avoid foreclosure.
You NEED an experienced Charlotte NC short sale specialist! Contact us today so that we can help YOU.
(THE best Charlotte home search available - no kidding!)
Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310
