Why would a homeowner opt for a Short Sale?
A successful Short Sale will prevent a foreclosure from appearing on the homeowner’s credit report. If the home is foreclosed on but the mortgage company is not able to sell the home for what is owed on it and recoup all of their costs, the homeowner is still obligated for the difference (known as a deficiency judgement). In addition, the Lender will tack on the arrearage, interest charges, legal fees, listing charges, and maintenance costs of the home while it is up for sale. In pursuing a Short Sale vs. foreclosure, the homeowner will also have the satisfaction of knowing they tried everything possible to fulfill their obligation to the Lender on the money they borrowed.
