Roseburg Oregon Short Sale| Roseburg Oregon Foreclosure| Which Is Better

With Troy Schuyler

Which is better, a short sale or a foreclosure?  As a Roseburg Oregon real estate broker, I get asked this question often.  In this post, I will explain some benefits of a short settlement sale and some detriments of a foreclosure.  I’ll also provide my opinion as to why I believe that, in most cases it’s better to try to sell and settle short with the bank.  My goal in writing this post is to help you make a wise, proactive decision regarding your home and family.

Okay now, I’m guessing that if you think about it, you probably know someone in the pending foreclosure boat right now.  Maybe it’s a family member, a friend, or maybe it’s you.  Either way, if things don’t change soon…or you don’t get help soon, you, or that someone you know, will end up losing their home, like many others in Roseburg already have.

Even if you are not behind on payments…yet, but are having trouble making the monthly payments, or you just have a legitimate need to sell but your home isn’t worth what you owe, this post will give you some information you need to help in planning out a strategy.

But to answer the question whether it’s better to sell your home with a short pay-off or let the bank have it through foreclosure is dependent on several factors.

• But first, a word of caution:  Although you might be tempted to walk away and start fresh somewhere else, I would caution you not to be led by emotion.  I understand that emotions can run high during this stressful situation, but for your future, and for your family’s well being, let wisdom rule when making this decision.

Benefits of a Short Sale:

1. You list your home, you pick the real estate agent, and you accept offers (only subject to bank approval). In other words you are in control, not the bank.
2. Your credit score is typically not hit as hard as when you have a foreclosure on your record.
3. It is easier to rebuild credit.
4. Peace of mind…knowing that you don’t need to dread that future bank eviction date.  We can usually buy all kinds of time, making it a smooth transition.
5. Most of the time, a professional agent can get the bank to waive any deficiency judgment, and in Oregon, homeowners have a lot of protection.
6. Talk to your tax professional to find out how it will affect you.
7. Yes, you CAN do a short sale even if you are not behind on your payments.

• For those of you in this boat, you should know that there’s even a good chance of qualifying for another home loan immediately, as long as you were never 30+ days late on your home loan payment.
• If you are behind in payments, you will need to wait 2-3 years, depending on what type of loan you are trying to qualify for.

Fruits of Foreclosure:

1. You are served an eviction notice and need to vacate the property…the banks sells the property.
2. Your credit is typically hit harder than when you settle short with a bank approved sale.
3. I recommend talking to a tax professional to see how it will affect you.
4. You might be able to buy another home in 5-7 years if it was your primary home that you lived in.  There may be restrictions.
5.  If you didn’t occupy the home, like a rental, you’re realistically looking at a 7 year wait.

I hope that you find this information helpful in deciding whether you should go through a bank foreclosure or if it’s beneficial for you to attempt a short settlement sale on your Roseburg Oregon property.

Good luck and God bless.

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