An Alternative to DFW Foreclosures - by Tom Brewer

An Alternative to DFW Foreclosures

Dallas-Fort Worth homeowners that have suffered financial losses due to the effects of the slow economy may find themselves in a situation where they have to consider foreclosing or selling their home. This is especially true in situations where someone has lost a job, suffered a medical setback or faced significant stock losses.
For many homeowners, any of these major financial blows can result in having to make tough decisions regarding what is most important for their family’s well-being. For some, foreclosure is often the natural choice even when it means moving out of what may have been their dreams homes.

This is where the short sale can come in handy. A short sale basically occurs when homeowners, usually on the precipice of foreclosure, negotiates with their lender to sell the home quickly, usually for less than its market value. Sometimes the short sale is for less than the homeowner owes on the home.

The main benefits of the short sale over foreclosure include:

• Homeowners can often avoid paying taxes on the amount of loss the lender incurs.
• Homeowners don’t have to default on their loan. This can be a major setback in the future if they want to buy another home.
• The homeowner’s credit rating doesn’t suffer like it would with a foreclosure.
• No stigma over having to foreclose
Homeowners in trouble financially will have to go through a lengthy process to be approved for a short sale but in some cases, the pros outweigh the cons when deciding whether to foreclose or go for a short sale.