Q: What are the advantages of a short sale?
A: Short sales occur when a lender agrees to accept less than the amount owed against your property because there is not enough equity to sell and pay all costs of sale.
- There is less damage to your credit report after a short sale involving late pays than a foreclosure.
- Another advantage of a short sale status on your credit is your ability to buy another home within 2 years or less instead of the 5 to 7-year or more required period as a result of a foreclosure (under Fannie Mae guidelines).
- If your credit report does not reflect late payments of 60-days or more, under Fannie Mae guidelines, you will be eligible to buy another home immediately.