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.

These numbers are never stable, and foreclosure is one thing homeowners and even the lenders themselves do not want to happen. There is this misconception that lenders favor a foreclosure, but the truth is it’s not always a win-win scenario for lenders when a San Diego foreclosure takes place. For one, there are high costs involved with a foreclosure and taking back the property.

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.

This is one of the major reasons why wanting a San Diego short sale is better than a San Diego foreclosure. Short sale happens when the two parties agree to sell the property at a lower price than the property’s value. Proceeds from the sale then go to the creditor. This process is less costly and more convenient to both the debtor and the creditor.

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.

For assistance to avoid being part of the list on a San Diego foreclosures, there are numerous companies dedicated to offering short sale services. They can relieve some of the stress you face with debt and get your finances back to a balance in no time.

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.

Don’t be afraid to opt of a San Diego short sale. It is your best chance to avoid a foreclosure and move on with your life and get a fresh start.

Few markets have been hit as hard by the housing crisis than that of Southern California. San Diego short sales can be found every where. Buyers can now easily benefit from San Diego foreclosures.