Some of the benefits of a short sale are as follows:

• Lender agrees to discount their payoff
• Avoid having a foreclosure on your record
• Less impact on credit score than a foreclosure
• Can typically qualify for new home loan in about two years
• Homeowner can stay in their home until closing
• Short Sales are almost always tax free (H.R.3648 = New Law)
• Short Sales are free because the lender pay “ALL” costs
• Right thing to do
• Relief from debt
• Gives homeowner a fresh start
  
  Minimize credit damage.

A foreclosure can be very damaging on your credit report, whereas lenders tend to report “settled” or in some cases “paid in full” or “paid as agreed” upon successful closing of a short sale. Recent reports state that if a borrower misses 2 to 5 mortgage payments, their credit score will be affected by an estimated 30 to 60 points. If a borrower suffers foreclosure, it can affect their score 140 to 200 points.

Stay in your home.

During the lengthy short sale process, you can continue to stay in your home and depending on your situation, not make any payments. There’s no point in moving out and paying rent elsewhere, if you can stay in your property until the Short Sale is done and save money.  We are not advising you to stop making payments. We at Waugh and Associates always recommend you consider consulting with an attorney and a tax professional on the legal and potential tax consequences that may arise as a result of a short sale.

$1500 in government incentives.

With NEW SHORT SALE GUIDELINES, you may be eligible to receive $1500 government incentives at closing for your relocation expenses.

Right thing to do.

Many sellers feel that walking away from their home is irresponsible and unfair to the lender. A short sale is a respectable option. The home is sold and possession transfers just like any other sale minimizing the impact on the surrounding community. And, the homeowner’s mind is clear to move forward and begin rebuilding their financial future.

Reduce future liability.

A Short Sale usually allows you to tie up financial loose ends by getting the lender to agree, in writing, that the debt is fully satisfied. You can move forward with your life without having to worry about your house, your mortgage, any outstanding debt or future liability.