Troy Funk, CDPE, SFR, Sarasota Short Sale & Real Estate Expert

When facing the possibility of foreclosure, there are many solutions, including Reinstatement, Forbearance, Renting the Property, Refinance, Loan Modification, Bankruptcy, and a Short Sale.

Which of these alternatives to foreclosure is right path to take? Since everyone’s objective and circumstances are different, it’s important to understand the potential consequences of each solution to make the best decision. With a foreclosure, the consequences could be the most severe, negatively impacting your credit, job security and future opportunities for housing as well as the threat of a deficiency judgment.

In many cases, the best possible option may be a short sale. Short sales are generally found to be the least damaging to your credit and the fastest path to financial recovery. Here are some common benefits of a short sale.

#1 – LOW COST ALTERNATIVE – It normally does not cost you any “out of pocket” expense to complete a short sale. Properties sold as a short sale are usually sold “As Is,” which means there is no expense to repair the property to sell. Your lender also generally pays the real estate commission and all expenses associated with the sale.

#2 – MINIMIZED CREDIT DAMAGE – There is minimized damage to your credit on a short sale compared to a foreclosure. Most short sales will only impact your credit score 80–100 points, compared to 250–350 points with a foreclosure.

#3 – FASTER FINANCIAL RECOVERY – Following a short sale, a homeowner may be able to secure new financing within 2 years compared to 7 years on a foreclosure.

#4 – PLACE TO STAY - A Short Sale is a dignified solution to a difficult problem. A Short Sale allows you to stay in your home until the property is sold. In fact, a short sale can delay a foreclosure. In many cases, a lender will delay a pending foreclosure to ratify a pending short sale.

#5 – FRESH START – A short sale gives a homeowner a new start. A short sale will make the process of finding another property to move into easier. In addition, the Mortgage Forgiveness Debt Relief Act of 2007 may be applicable to your situation and may give you the opportunity not to pay taxes on the difference between your loan amount and the short sale price.

For more information about short sale options in Sarasota, Florida, call Realtor & Short Sale Expert Troy Funk at (941) 957-3737. Troy Funk is Cerified Dispressed Property Expert (CDPE) & Short Sale and Foreclosure Resource (SFR) certified has been a licensed Real Estate agent in Sarasota, Florida for more than 25 years. He specializes in short sales and REO / Bank Owned Real Estate in Sarasota and Manatee counties, and is associated with Keller Williams Realty on the Water at 665 South Orange Ave., Suite 2, Sarasota, FL 34236.

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