Short Sales In Los Angeles- Why a Short Sale is better than a foreclosure
I've been exploring the Los Angeles Short Sale process, specifically short sales in the Silver Lake area. By now you know what a short sale is, what might qualify as a short sale hardship, and what goes into a short sale package.
If you are in the midst of financial issues and are having trouble paying your mortgage, a short sale is preferable to a foreclosure for a number a reasons. You may be feeling powerless and like everything is outside of your control. You can get some degree of control by working with an experienced Realtor and short selling your Los Angeles home. The worry of being evicted by losing your home to the bank can be eliminated if you are in the process of negotiating a short sale with your lender. The trustee's auction can be postponed or cancelled completely during the short sale process.
Working with a qualified Los Angeles short sale agent to sell your home will allow you to determine your own escrow closing date, much like a normal sale once the short sale has been approved by the bank, giving you time to pack and move without fear of eviction. You can also save yourself from any potential embarrassment of losing your home to foreclosure.
One of the main reasons to short sell your Los Angeles home rather than let it go to foreclosure is to protect your credit rating as much as possible. A foreclosure has major negative effects on your credit and will stay on your report for 7 years or longer. A short sale is normally reported as a settled account, having a much lighter impact on your credit. A successful short sale could allow you to buy another home in as little as two years!
Don't get me wrong, a short sale will definitely have a negative effect on your credit rating but it could 
allow you to buy another home much sooner than a foreclosure would. Fannie Mae requires a minimum of 2 years to re-establish credit after a short sale before allowing a new mortgage. However, if you meet specific criteria, you may be able to qualify for an FHA loan right away. FHA will loan to those who remained current in their mortgage and other installment debts throughout the short sale process, had a verifiable hardship that allowed for the short sale, and currently have a credit score of at least 620. A mortgage lender can give you complete list of requirements. Even if you don't fit this profile, you may be eligible for a new FHA loan in as little as three years.
Think about the advantages of a short sale over a foreclosure before it's too late and the decision is made for you. If you are in a tight position and are not sure if you qualify for a short sale in Silver Lake or surrounding areas, please contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and make recommendations on your best course of action. For legal and tax advice you will need to speak with a CPA and/or attorney.
For more information on shorts sales in Los Angeles County and buying or selling property in Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com
Broker Associate
Keller Williams Realty, Los Feliz
213-215-4758
info@LApropertySolutions.com
http://www.LApropertySolutions.com
Copyright © 2010 By Jenny Durling *All Rights Reserved * Short Sales In Los Angeles- Why a Short Sale is better than a foreclosure
Jenny, great information. I have been to many Short Sales seminars and do have much short sale vs foreclosure knowledge. Unfortunately I can't reveal much to prospective clients because that would be giving them financial/tax advice. That is why I just pass them short sale flyers from NAR that have the info.
Thanks Song- Sellers should certainly seek legal and tax advice before making big decisions like this. Unfortunately there is alot of mis-information out there.