When faced with the challenging decision of selling a home that’s underwater in Columbus, Ohio, many homeowners find themselves weighing the options between a short sale and foreclosure. While both paths can provide relief from an unsustainable mortgage, a short sale offers several distinct advantages:
1. Less Impact on Credit Score: A short sale typically has a less severe mpact on your credit score compared to a foreclosure. This can make it easier to recover financially and secure new credit or loans in the future.
2. Control Over the Sale: In a short sale, the homeowner retains more control over the process, including the ability to negotiate with potential buyers and select offers. This is in contrast to foreclosure, where the lender takes full control.
3. Reduced Deficiency Judgments: Some states allow lenders to pursue a deficiency judgment for the difference between the sale price and the remaining mortgage balance. In a short sale, homeowners can often negotiate with the lender to waive this deficiency.
4. Faster Recovery: The waiting period to buy another home is typically shorter after a short sale than after a foreclosure. This can enable homeowners to get back on their feet and re-enter the housing market more quickly.
5. Less Stress and Stigma: While both options are challenging, a short sale can be less emotionally taxing and carry less stigma than a foreclosure. Homeowners can leave the property on their own terms, which can make the transition smoother.
Choosing a short sale can provide a more manageable path forward, preserving your financial health and peace of mind. If you’re considering your options, reach out to Prive Investments for a no-obligation “Problem Solving” call to see how we can assist you. https://priveinvestment.com/?fluent-form=25