What are the pros and cons of selling short sale on a condo?
April 30, 2010 by
Filed under condos for sale
The complex we live in is full of foreclosure condos and we want out of ours, but can not sell in the current market. We have had it on the market for 3 years but took it off when the housing market went down. Typically you owe more than what the other condos are going for in here. Any advise will help.
Give it back to the bank. If your State is a non-recourse State, they get the home back and that’s the end of it. It does affect your credit.
Pro or con both gonna have affect on your credit
Your credit will tank but not as bad as a foreclosure. You need approval from the bank and normally can’t get approval until you are in default (so you have to ruin your credit first) and normally the bank won’t approve it if you have liquid assets, good salary, or good debt to income ratios.
The bank cannot come after you later for any shortfall on a short sale but can on a foreclosure if you are in a recourse state or if you previously refinanced the loan.
I am a real estate broker specializing in short sales.
Pro – Your credit is better than a foreclosure
Con – depending on your state, type of loan(s) and type of foreclosure, they can come after you for the difference. There could also be tax consequences. The same is true with a foreclosure.