There have been many San Diego foreclosures recently in the news, especially with the current state of the economy. If you are one of those individuals struggling to pay your house payment, you are not alone.
There is a lot of confusion over what a short sale is versus a foreclosure. So hopefully, this article can help alleviate some of the misunderstanding. If you are looking at your options, this knowledge can help you stop foreclosure in some cases.
Foreclosure is one of the worst options if you are having problems with your house payment. One of the reasons why you want to avoid San Diego foreclosures is because this action can haunt you for the rest of your life.
Usually, there is a catalyst for why San Diego residents cannot pay their monthly mortgage payments. This can range from something like an accident, an illness, change in marital status or unforeseen job problems.
Foreclosure is what happens when a lender takes your house from you. With foreclosure, you still owe the remaining debt, even though you do not own the house at all anymore. Often times, you also will be charged San Diego foreclosures costs. Because of the bad mark this puts on your credit, you will most likely try to stop foreclosure any way that you can.
When foreclosure seems unavoidable, then a short sale is typically your only option. With a short sale, you still have a bad credit mark, but you do not have as much debt. Sometimes, this method is best for when you first start falling behind on your payments because the longer you wait, the more you will have to pay in arrears.
San Diego foreclosures are happening left and right, but you can stop foreclosure from happening with your own home. A short sale is where you sell your house for less than what you actually owe the lender.
Rather than waiting until it is too late, stop foreclosure from happening. You might be experiencing a bad financial situation with the current economy, but a short sale might be worth it in the end.
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