“Should I stay, or should I go now?”
A question many distressed homeowners are asking every day is, “Should I Short Sale my home? Try to stick it out? or Let it go to Foreclosure?”
The decision to stay with an over mortgaged home or go on to a fresh start is complicated. The complications include financial factors such as possible deficiency judgments, bankruptcy and credit rating scores, as well as more personal factors such as family, neighbors, friends, and schools. Some under-water property owners are choosing to stay in their homes because they believe that the market will rebound, or that the market will somehow refund the losses that they have taken.
How long are you able to stay with your home hoping the value will recover? For some, making payments on an expensive mortgage is just throwing good money after bad. As an alternative, should you consider a short sale, loan modification, or foreclosure?
Here are a few helpful questions to help gain perspective:
- Do I have a legitimate Hardship that qualifies for a Short Sale or loan mod?
- If the Hardship is legit, am I better off to attempt a loan mod to stay in a property where I owe more than it’s worth or is it better to get out from under it and start fresh?
- What is the impact on my credit of a Short Sale vs. Foreclosure?
- What is the possibility of ending up with a Deficiency Judgement with a Short Sale vs a Foreclosure?
- What will the tax consequences be with a Short sale, loan mod, or foreclosure?
Should I stay or should I go? For an increasing number of borrowers, the numbers say … GO!
For assistance to answer these and any other questions you may have for your personal situation feel free to contact me any time. I am also glad to provide current market value info for your property if that would help your decision making process.