Many Arizona homes are currently underwater, leaving homeowners left with the decision of staying in a house not worth its value, or walking away from the house.
There are two main options to consider in order to walk away from your home. You can either short-sale the home or leave the home, causing the bank to foreclose on the loan. The foreclosure process may seem easier than a short-sale process with similar outcomes, but in reality there are several benefits to short selling your home. Below, we have listed some of these benefits.
(1) There is a substantially shorter time limit (5 years shorter, in fact!) on eligibility for a FNMA/FHA/VA backed mortgage for borrowers who short sell their home rather than have their home foreclosed.
(2) Credit scores for a foreclosed homeowner typically drop several more points than an owner who short sells his home.
(3) Qualified short sellers may receive $3,000 through the government’s “Making Homes Affordable” program, while this benefit is not available for a foreclosed homeowner.
No matter which option you choose, it is important to consult with an attorney prior to walking away from your home. An attorney can explain to you how to avoid deficiency judgments, outstanding fines, wage garnishments, and how to protect your bank accounts from being seized in the process of a short sale or foreclosure. An attorney at The Carroll Law Firm will sit down with you and explain to you the benefits and costs of walking away from your home, and how to protect yourself from further debts associated with your home. Call us today at (623)551-9366 to schedule a short-sale/foreclosure consultation.
