The last few years have been pretty financially tough. But we’re all going to get through it – promise! One way to lighten the load if your home is under water, you can’t afford the monthly payments and a refi doesn’t look like it could be a reality, is to short sell your home. While nothing is written in stone, it does seem that the ramifications of a short sale are less then a foreclosure.
Case in point, three years after a short sale you can purchase a new home via an FHA loan. That means you only have to put 3.5% down to get into a new home. And in fact, if you have 20% to put down on a house, you can see if you qualify for a conventional loan only after two years. All this is just a matter, of paying your bills on time and being diligent about making your goal of owning another home a reality again.
So if your feeling like you have the weight of your house on your shoulders, it might be time to lift it off. With a short sale, you can hopefully move on with your life quicker then if you wait in the dark to see when the bank will finally foreclose.
Moving on means a fresh start and refocusing for the future.