Short Sale Advantages

Short sales appear on your credit report as "pre-foreclosure in redemption", not as "debt discharged due to foreclosure"

Less impact on your credit score

All mortgage debt is typically fully discharged

The benefits to homeowners:

- Fannie Mae has changed thier loan guidelines and will now allow someone with a previous shortsale to qualify for a home loan. There needs to be two years time passed and other credit must be good.

- Homeowners can avoid foreclosure and the embarrassment of eviction.

- There are no up front costs or out of pocket expenses to close escrow.

- Homeowners closing a Short Sale avoid the damaging effects of foreclosure on credit reports.

- The Homeowner can even stay on the property during the Short Sale process at no cost.

The benefits to lenders:

- A Short Sale is a more cost effective solution than a foreclosure.

- Short Sales allow lenders to limit their percentage of foreclosed loans to meet their investor's guidelines.

- Lenders don't have to evict the homeowner, rehab the property, or market the property for resale.

**Nothing is this article should be construed as legal or financial advice. For legal/financial questions, seek a the advice of a professional advisor.