Are You Behind On Payments or perhaps Need to pay Greater Than Your House Is Really worth? This information Short Sale vs Foreclosure can help you sleep better at night.

If you are like most homeowners, you never planned on missing a mortgage payment. It just happens. You miss one payment, and then another, and one more. Soon, you owe thousands of dollars and have no means to pay the huge sums which are overdue

There are several ways to avoid foreclosure.

Or, you might still be making your payments but you have an „upside down“ or „underwater“ mortgage (also known as negative equity), all terms to describe when you owe more than the present market value of your home. You’re not the only one – many homeowners have negative equity because of the condition of the housing crisis which has caused most san jose real estate prices to decline year after year.

If you are behind on payments or owe greater than your home is worth, lenders (bank who possesses your home loan) are ready to give you sensible alternatives to avoid foreclosure..

This is only a short sample of the many options to short sale vs foreclosure addressed in this report. The recommendations and procedures for each option change quickly to manage the volume and requirements for every bank and in every state.

OPTION 1: Foreclosure

If you do nothing, you will probably face foreclosure from your lender (bank who owns the home loan). If you can’t make your payments and do not seek out help, the lender has the right to foreclose on the property and auction it to recover its investment from the proceeds of the sale.

OPTION 2: short sale vs foreclosure

A short sale consists of selling your house for below you owe on the loan. That’s why it’s called selling short sale.

However, if it is possible to get approval from the lender to sell your san jose real estate for below the amount owed, you will avoid foreclosure and the related outcomes.

A short sale versus Foreclosure is generally not granted by the lender until you have a real difficulty and no possessions. But if you qualify, banks would instead do a short sale because it decreases legal charges and they end up netting more cash when the home is sold.

A short sale vs Foreclosure has its own difficulties which you will have to know before undergoing the procedure, and a your credit will be affected from either scenario. But a short sale has much less implications than a foreclosure. For example, with a foreclosure it can be a minimum of five years before you are able to qualify to purchase another house; however, with a short sale you are able to qualify in 2 to 3 years.

Here is the actually bad news – if your san jose real estate cannot be sold for the full amount of your debts, a „deficiency judgment“ might be issued against you for the unpaid balance of the loan. A foreclosure and deficiency judgment can seriously affect your credit and the ability to qualify for a loan for several years into the future. In some cases it can also avoid you from getting a job.

In case you are facing a hardship and feeling like foreclosure is the only thing that you can do, now is NOT time to stress and panic. Instead it is time to explore more alternatives making an informed decision. Doing nothing or making a poor choice could be harmful for quite a long time. A foreclosure will cost thousands more than just the loss of your home, so it is important you always investigate your options and talk to a professional who knows the actual solutions to your questions.

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