Know The Difference Between Shortsale and Foreclosure

Falling behind the mortgage is an awful situation. Falling behind your mortgage is where you have reached the point of having no longer the ability to further pay for your home. Dont be saddened by this, there are still sensible solutions around to solve this problem. Know the residential real estate services in Issaquah and you can choose whether to go for short sale or to go for foreclosure.

If you are having second thoughts as to what foreclosure means, this is when your mortgage loan is set as default and then the bank will have to retrieve your posession of the house. This strikes out as nasty however there is one advantage here and that means you are given the option to actually walk out of your now “former home”. This is seen as advantageous especially when the home mortgage is definitely higher than the home value. But foreclosure actually adds a bad point on your credit score and this will stay on your credit report records up to a period of seven years But this is not only the worst to come for a foreclosure, since this will further give you additional dilemmas such as resulting to consequences of having a hard time to look for a new house because of the bad scores you are having. The bad scores have lowered your eligibility to buy another home in three to five years.

A short sale is another option if you are already falling behind your mortgage. A short sale is a bank agreement type in which it is agreed upon that your house will be sold for less than its actual value along with the total amount of money that you have invested for the home. This is marked especially when you’ve reached the point where you are no longer able to make a payment. While this gives an advantage of bringing you in control, this is often seen by some as a more responsible act than going foreclosure since you are not allowing the bank to have control plus you will also be given the chance to purchase another home immediately as you want and of course depending on specific conditions. However if you have still fallen behind the needed payments to be done, then it may need another three years to avail an FHA loan. Know more about these from the experts and for additional residential real estate services in Issaquah.