The events that took place in the real estate industry a decade ago were pretty shocking. A lot of families ran into some issues and were upside down in their home. We have come a long way since that time and have also learned a lot about short sales and bankruptcy. Many people compare the two options when it comes to finding a way out. We intend to look at a couple of differences here showing which one is more advantageous.
Short Sales Can Take A Bit Of Time To Process.
The short sale process can be long and requires a bit of detail. Furthermore, everybody needs to be on board, the bank, the selling agent and the buyer agent. Having all these details ready for the bank makes the process a bit easier. Working with the bank is a far better option rather than dealing with possibly a foreclosure situation. The banks can be frustrated when some of the information Isn’t laid out clearly for them. This issue can cause the process to delay and create a sense of anxiety or frustration for the people trying to sell.
Bankruptcy Can Be An Answer To Some Situations Possibly.
When looking at a short sale or a bankruptcy, you’ll want to get all the facts together that you can. Each can have their advantage under certain circumstances. People need to understand the two different types of bankruptcy. The first one is chapter 7 and the second one is chapter 13. Each come with their own set of challenges with regards to exemptions. The major problem with bankruptcy is, while it can clear your obligations to creditors, it is a long road to recovery afterward. It can also impact your ability to borrow down the road with other lenders. Bankruptcy does have its place. However, there are better Solutions.
Short Sales Can Be A Better Option Looking Long-Term.
Short sales are a better option in most cases because of the long-term benefits. This outlook is especially important when you’re the type of person that is always planning their next step. If considering your credit score in the future is essential to you, rather than the now, a short sale is your answer. The reason for this is you are working closely with the bank, and there is an opportunity for wiping your slate clean without the long-term consequences.
Seeing The Light At The End Of The Tunnel With Short Sales.
You can walk away from a potentially devastating situation and still hold your head high. A short sale can allow the owner to strategically plan the sale of their home and walk away without the stigma of bankruptcy attached. This isn’t just important among peers, but it’s also crucial in the financial industry down the road. The lender will grant you quite a bit more flexibility for future transactions because they know who you are and your level of integrity. Additionally, you will also have the option to meet the new owners of your home. This possibility is significant to many people because of the memories they’ve developed there.
In conclusion, a short sale provides a better long-term Outlook regarding your financial position and credit score. Short sales can be frustrating with the bank, but in the end, they can grant you debt forgiveness. Ultimately, you can hold your head up high after deciding to proceed with a short sale Instead of the stigma of bankruptcy.