In today’s market, it’s not uncommon to hear or read about distressed homeowners. Many are in the position of deciding whether to short sale their property or just let it go to foreclosure.  For more than 90%, of homeowners facing this dilemma, a short sale is typically the best choice.     

Not only does it cause less damage to the homeowner’s credit, but it provides the negotiation of recourse liability, which is important when dealing with multiple lenders. Doing a short sale also demonstrates cooperation from the borrower that increases the willingness of future creditors to provide a new loan.

Most people struggling with being upside-down in their home loans, bought in the early to mid-1990′s with attractive loans such as negative adjustable, or pay-option ARMS, allowing borrowers to qualify for “stated income” loans, where the starting interest rate virtually guaranteed a loan.  Unfortunately, as these attractive rates ended and the interest finally adjusted, borrowers were unable to afford the payments. 

Today, the upside-down homeowner profile is ever-changing. Today’s distressed homeowner is more likely to have a decent loan but may have experienced an unexpected life change, or just plain impacted by the recession. Obviously, a short sale is not always for everyone, as each circumstance is individual and unique. If you or someone you know is facing this predicament, and would like to read further on this very informative article and related articles, click on the link below… I hope you find it helpful.

http://shortsaleblogger.com/sellers/2010/08/16/when-is-it-better-to-walk-away-than-short-sale/