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Why A Short Sale And Not A Foreclosure?
The current economic environment never leaves out the financial vulnerability of a lot of families. Foreclosure rates are constantly increasing every year. For San Diego foreclosures alone, it amounts roughly to 3,500 in the 2nd quarter of 2009, and this is a 14 percent increase from the previous 1,630 San Diego foreclosures in the 1st quarter of 2009.
Foreclosure is one scenario a homeowner or lender fears to face. Unbelievably, the creditors themselves want to avoid this dilemma as well. It is a big misconception that lenders would like a foreclosure. The fact is that it is not favorable to them as well because a San Diego foreclosure process has high associated costs.
The costs associated with a foreclosure can go up to as much as $77,000. A homeowner may roughly shell out something like $8,000 or more for related services. For the part of the lender, it is even a higher amount. The lender has to deal with legal and recording fees, advertising and finding a qualified buyer, and possible the renovation of the property if needed.
Clearly this is why more people are opting for a San Diego short sale than to deal with a San Diego foreclosure laws. A short sale happens when the lender and the debtor agree to sell the mortgaged property for less than the outstanding balance of the debt. After which the proceeds of the sale will be given to the lender. This process is much less time consuming than a foreclosure.
A short sale is definitely a better option than a foreclosure. It lets you settle debt for less than the outstanding debt that you owe. It also lessens the negative impact on your credit history.
There are companies that can help you stop a San Diego foreclosure. These companies can relieve you of the stress you are dealing with over your debt and help you get back on your feet.
A short sale usually offers favorable outcomes. However, it is also a complicated legal process. This is why it is highly advisable to team up with experienced professionals from the real estate sector that offer short sale services. Choose one that works with good lawyers and tax advisors that can handle the complex details for you.
A San Diego foreclosure is really not an ideal scenario. Because of the many reasons and negative impacts it has, more people would rather be part of a San Diego short sale.
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