Idaho Short Sale vs Foreclosure
Idaho Short Sale vs Foreclosure
Many Idahoans are facing the very real threat of foreclosure, almost all of them are looking for ways to avoid it. A realistic option, and a topic that has garnered a ton of interest, is the Idaho short sale. Short sales are becoming an increasingly popular, very common way to avoid foreclosure for distressed homeowners.
How does a short sale relate to, or differ from a foreclosure? Short sales precede the home being repossessed or foreclosed on by the lender. The property is sold much earlier than the months it usually takes to reach foreclosure, allowing the lender to avoid the more costly foreclosure process.
It should be noted that there are still negative repercussions for short sales. A short sale homeowner’s credit will still be 
affected by settling with the lender. Some experts say as much as 200 to 300 points on the sellers overall credit score. That being said short sales are still less damaging than those associated with foreclosure or even bankruptcy. Short sale sellers are looked at as less risky than foreclosed sellers. Fannie Mae adjusted their guidelines to dictate only a two year waiting period for short sale sellers to buy another primary residence, while they extended the waiting period for foreclosures to five years, according to Fannie Mae Guidlines.
A short sale can be a win-win for both seller and lender. A short sale gives the sellers the opportunity to avoid foreclosure and the negative implications that a foreclosure brings and be able to return to home ownership in a timelier manner. The lender receives most of the value of the loan quicker, and avoids incurring additional legal costs while the foreclosure process plays out, which can take many months or sometimes years. Don’t forget short sales are a great option for bargain hunter buyers 
and investors.
If of course, you’re a buyer considering entering into a short sale, it would be very wise to consult a Idaho real estate agent who can answer your questions and help you through the negotiation process. Then you know you will be prepared to pull together all the appropriate information you need to complete the transaction and move into your new home.