Homeowners wanting to stop foreclosure are faced with a number of options, one of which is doing a short sale. Sometimes, depending on a person’s situation, they may allow a property to go into foreclosure instead of attempting a short sale. Many times the foreclosure is a result of not knowing one’s options and in other incidences the bank just will not cooperate. However, by accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. The primary consideration above all is the affect both can have on your credit score.

So how does a short sale basically work? The design of a short sale is really simple. A short sale happens when the sale proceeds of a house are not enough to pay what the owner owes on the mortgage or debt on the property. Many lenders or lien holders will agree to accept less than what is owed from the homeowner and forgive the shortage on the mortgage or lien if the owner was financially incapable of paying.  Beware and be warned that not every lender or lien holder will negotiate. If your payments are current or the lien holder believes that you have the ability to pay, then most lenders have no interest in negotiation.

Another consideration is tax liability on the difference between the sale amount and the original loan amount. Although President Bush signed Mortgage Forgiveness Debt Relief Act of 2007, it is always advisable to seek legal advice when doing a short sale transaction. Short sales require much patience and strong nerves.

So then what destroys my credit the most? Foreclosures, without a doubt will incur more damage on a seller’s credit report than a short sale. Typically your credit score will take plunge between 200 to 300 points in a foreclosure. Short sales have a far less damaging affect on a credit report. Credit scores typically lose between 80 to 100 points.  Down the road it takes around three years after a foreclosure before a lender will offer a sensible interest rate, whereas for a person who went through a short sale typically waits around 18 months to buy another home at a good interest rate.

Salvaging your credit should always be the primary concern when making the decision between a short sale and stopping foreclosure. The savings in interest payments alone should be convincing enough for most people, not to mention your buying power in the near and distant future.

Short sales are not an easy process to complete and there are many things to consider when doing a short sale. It is suggested that one should use a professional when buying or selling a short sale. A realtor specializing in short sales is an excellent starting point. If you are in a situation where you believe that you owe more than what your place is worth and just can not afford to pay your mortgage. Call a good realtor for advice and help.

Jason Gobeli of the GoBelly Group of Connect Realty can be reached at 877 SOLVE THIS

(that’s 877-765-8384) or you can email him at gobeli@connectrealty.com

In this book Jason discusses the values and mindsets that we hold dear that are counterproductive. These self defeating flaws in our belief system need to be shattered if we are to attain real wealth. Jason handles such topics as education, jobs, business, money, savings, credit and more.

What makes this book really special is in his spiritual approach to these issues. Not only is change discussed in his book. Direction for that change is clearly present. This is just not another how to book. This book shows you specifically where to go and what to do in order to achieve your goals. 

This book is written by Jason Gobeli of Gobelly Inc and the GoBelly Group of Connect Realty. He is a married father of 3, a realtor and real estate investor, an ordained minister, a consultant, teacher, entrepreneur, business owner and a highly respected nationally recognized speaker. He has a proven track record that speaks for itself.

He has extensive experience in real estate, sales, marketing, management, training and motivation. He started GoBelly Inc. from the ground up. He has numerous experiences implementing sophisticated creative real estate transactions nationally.

Using Jason’s  wealth of knowledge’ his corporation has completed both purchase and sales transactions with no money down, cash back at closing, as well as the purchase and sales of notes. They have done transactions through trust, leases options, foreclosure and assignments. Flips, fixers and short sales are also areas of experience.

Jason is currently writing another book ‘The Thing of Value” which should break print this summer. Jason Gobeli has a passion for changing lives and teaching others how to acquire real wealth. Jason is also the leader of the GoBelly Group of Connect Realty. The GoBelly Group of Connect Realty is an explosive organization of realtors who make more money working together as a team than they could have ever imagined as individuals. ‘Cutting edge technology meets a good old fashion positive mental attitude.’ is their motto.

Do yourself a favor, order this book and read it immediately then follow the directions in Jason Gobeli’s ‘Wealth Plan’. You deserve to achieve your goals.

You can order this book online at http://www.gobelly.com/ebook.

  You can contact Jason Gobeli directly at gobeli@connectrealty.com.