The advantages of a Short Sale are
- A Short Sale has less of a negative effect on the Borrower's credit score than a foreclosure
- With a Short Sale, the Borrower should be able to remain in the house until the lender accepts the short sale (instead of moving out and possibly paying rent elsewhere)
- More and more lenders are allowing the Seller a relocation allowance with a Short Sale
- With a Short Sale, any deficiency can usually be negotiated away as part of the approval. With a foreclosure, the lender may create a deficiency by buying the property for less than the debt owed
- Any Second Deed of Trust will not be paid anything with a foreclosure. On the other hand, with a Short Sale, the second lender will receive some money and will probably negotiate a waiver of any deficiency
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville & Lake Monticello