Maryland Real Estate Short SalesMany homeowners can become understandably confused and overwhelmed when trying to comprehend the many technicalities and differences that accompany choosing a short sale over a foreclosure. We will gladly take a closer look at the benefits of moving forward with your short sale option.

Protecting Your Credit Score 

A foreclosure can wreak havoc on a credit score. Most borrowers see a drip in the range of 250 points in the event of a foreclosure. Depending on your circumstances, a short sale can have a much different impact on your score. Homeowners who have managed to stay up to date on their mortgage payments often see little to no impact to their credit score after the sale. In some cases, the short sale can improve the borrower’s debt to income ratio, therefore actually raising the credit score.

Borrowing Again

You will obviously be interested in getting your family another home as soon as possible. However, you will be limited to renting for quite some time if you have a foreclosure in your lending history. A foreclosure will put you out of the running for a Fannie Mae backed loan for at least five years, and it will definitely look unfavorable to majority of all other lending sources as well.

Those who have opted for a short sale instead of a foreclosure often have much more success buying a house, and move in to their new home much sooner. Fannie Mae’s guidelines do require a three year waiting period, as opposed to the five year period. However, lenders who do not sell their loans to Fannie Mae are much more likely to approve your future loans if you do not have a foreclosure in your history.

Saving Money

Along with protecting your credit and financial history, a short sale can actually save you money. Maryland is a recourse state. Therefore, the residents of Bowie and Prince Georges County can be held responsible for paying the difference between what is owed, and what the lender receives through the nominal foreclosure sale.

In the event of a short sale, the lender is very likely going to receive more proceeds than they would if the property forecloses. Therefore, they are often more willing to negotiate, or waive, their deficiency judgment rights. This is where Tri-State Realty can help you negotiate a strong deal in order to help you see the best possible financial outcome.