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[GRAPHIC: Price Law Firm, PLC Attorneys at Law Short Sale Advantage and Disadvantage
[GRAPHIC: Price Law Firm, PLC Attorneys at Law Go to www.cpricelawfirm.com for a free DVD about the following: Mortgage foreclosure Homeowner's Associations Avoiding foreclosure Keeping your home Short sale Secondary mortgage Modifications Home affordable program and much more]
MALE VOICE: It avoids foreclosure. It may prevent the deficiency from the lender coming after you. The disadvantages, and this is my big problem, is there are potential tax, tax advantages from doing the short sale. And then it may not prevent the deficiency too. And that's something we want to talk about. Let's go to the next slide.
All right, avoids foreclosure. All right, and this is--you're going to hear this a lot. It may have a smaller impact on your scores, on your credit, if you do a short sale versus doing the foreclosure. Okay, because, you don't have the public record. There's a public records section on credit reports and it says foreclosure. That will pull your scores down. So you won't have that if you do either the short sale or the deed in lieu. Okay?
But it's not without its costs. They--the credit bureaus will treat a short sale as a settled debt. And again, if you've ever had any experience in this area, if you've some credit cards that you owe $15,000 on and you say, "Hey, I'll pay you $5,000 instead." And they say great, and they take the $5,000. That $10,000 is treated as a settled debt for your credit, credit report. And that's the same thing that happens with a short sale.
[GRAPHIC: Price Law Firm, PLC Attorneys at Law Go to www.cpricelawfirm.com for a free DVD about the following: Mortgage foreclosure Homeowner's Associations Avoiding foreclosure Keeping your home Short sale Secondary mortgage Modifications Home affordable program and much more]
