What advantage is a short sale over foreclosure to the seller? Does it affect their credit?
– Karen Harris, REALTOR, Tomlinson South Realty, Spokane, WA. Ed says: First of all, if a homeowner is trying to sell short they are asking the lender to pick up all costs. There are no guarantees that a lender will sell short. How much baggage comes with the property? 2nd ,3rd mortgages liens etc. Everyone has to agree to the sale or it does not happen (lots of paperwork and a willing homeowner is necessary). There are many homeowners I have talked with that thought a short sale if possible was the right thing to do. It does affect ones credit score. Remember the Presidential Relief Act and how it will effect the short sale. This expires December 31,2009. Foreclosure can be a long drawn out process. A seller can wait until an official removes them from property if this is really what they want to do. In both cases the homeowner has stopped making payments and their credit has been damaged. Question: A neighbor wants to buy from a very recently vacated Freddie Mac owned property. What
