Without a doubt, owning a property that is facing foreclosure can be very stressful. Forecloses used to be few and far between, but given the current economic climate in our country, they have become much more common.
Many owners who purchased near the peak of the market (around 2005-2007 depending on location) currently owe more to the bank than their home is worth. If there was some sort of distress in their life (loss of job, reduced income, etc.) they may no longer be able to afford the mortgage payments.
In this case, it is important for a seller to know their options. In general, a short sale is much preferred to a foreclosure due to the lower impact on the seller’s credit score, and that an owner who short sells their home may be able to qualify for another purchase in as little as two years. If they go through foreclosure, they may have to wait up to 5 years or more to qualify for another purchase.
Knowing your options is very important.
For more information, visit www.ToddTurcotte.com. From there you can email or call me. I welcome all of your questions.