Advantages of Short Sales in Fort Collins, Colorado

If you have been threatened with foreclosure by your lender or received a Notice of Election and Demand for Sale that starts the foreclosure process, you may want to consider a pre-foreclosure Short Sale as an alternative to foreclosure.  This alternative is typically used when a property owner owes more on the house than its fair market value and has minimal or no cash flow or assets.

Here are 5 advantages of a Short Sale:

1. Waiver of any further liability on the debt owed to the foreclosing lender (cancelled debt will be treated as ordinary income).
2. Obtain a fresh financial start by stopping the foreclosure action.
3. Avoid potential bankruptcy.
4. Commission of Realtor & cost of sale to be paid from proceeds of the lender.
5. Lender gets fair market value sooner; less costly than foreclosure.

A short sale will cost you about 18-24 months before you would be able to receive another loan compared with the other alternatives:

Deed in lieu of foreclosure – 3 years

Foreclosure – 5 years and possibly more

Bankruptcy – 2 years but depending on the type of bankruptcy you may have to repay the debt (Chapter 13)

Contact me, Mike@MikeMalvey.com, if you would like more information about short sales or foreclosures especially in the Fort Collins and Northern Colorado area.