Short Sale vs. Foreclosure

Benefits of Foreclosure for Home Owners

  • No mortgage payments to make.
  • Foreclosure proceedings take months to conclude.
  • The home is still yours until the foreclosure is final.
  • No strangers are passing through your home.
  • Banks sometimes give cash for keys after the public sale.

Drawbacks of Foreclosure for Home Owners

  • The right of home ownership is striped away.
  • Homeowners return to the rental market as a renter.
  • The bank may post a Notice of Public Sale on your front door.
  • Your credit takes a nose dive, and a foreclosure will remain on your credit report for 10 years.
  • Under Fannie Mae guidelines, without extenuating circumstances, you will not be eligible to buy another home for 7 years.

Benefits of Short Sale for Home Owners

  • Retain some dignity in knowing that you sold your home.
  • You won't suffer the social stigma of the "F" word: foreclosure.
  • No mortgage payments to make, unless you choose to make them.
  • You can meet the new owners.
  • You will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years.
  • If your credit report does not reflect a 60-day+ late pay, under Fannie Mae guidelines, you will be eligible to buy another home immediately.

Drawbacks of a Short Sale for Home Owners

  • Waiting for the bank to respond to an offer is frustrating.
  • The bank will want to examine personal records such as tax returns, bank accounts, assets and liabilities, in addition to asking for a hardship letter from you.
  • Accommodating buyers will mean keeping your home in spotless condition for weeks or months until an offer is received and putting up with traffic through your home.
  • The derogatory credit will remain on your credit report for 7 years.

Do not hesitate or wait till it is too late to start to speak with your lender regarding a short sale option. Many people who hesitate and wait will not have an opportunity to submit a short sale package and begin the process. If you wait too long you will fall victim to foreclosure and have to deal with the foreclosure credit consequences.

We take all the drawbacks out of processing a short sale. We have managed to acquire several lender approvals on past short sales. We will negotiate directly with the lenders or loan service providers on your behalf. No out of pocket cost to you, the lender pays all the fees for a short sale.

Through our experience in processing short sales we know what lenders seek out when submitting a short sale package. We will do this on your behalf. We have developed contacts with most lenders and service providers to be able to efficiently process your short sale.

Through our marketing of your property we can more quickly and efficiently find a buyer to meet the lenders or loan service provider’s requests. In today’s market most available properties have multiple offers involved making the short sale process even quicker.


Manny Salinas REALTOR                      626-254-8786 Office

Give us a call or send me an email to set up a FREE consultation. You can email or call me with any of your questions regarding the foreclosure and short sale process.