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Posted On: February 26th, 2020 11:58AM
Short sales generally work if you are facing foreclosure or can't pay your mortgage. Short payoffs work best if you aren't having trouble with your mortgage payment.
Short sales and short payoffs are very similar in that both transactions involve the lender allowing your home to be sold for less than the total debt you owe. One of the main differences is that a short payoff allows borrowers to rid themselves of the home with little damage to their credit score while a short sale will negatively impact the borrower’s credit score.
There are also significant differences in the criteria to become eligible.
Criteria for a Short Sale
Generally, to be eligible for a short sale:
Criteria for a Short Payoff
Generally, to be eligible for a short payoff:
A short payoff can be a good option when:
Should I Do a Short Sale or a Short Payoff?
Ultimately, if you are behind in your mortgage payments (or soon will be) and are suffering from a financial hardship, then a short sale is probably the best route to pursue. However, if you are current on your mortgage payments, have financial resources, and simply want to move away from an underwater home, then a short payoff might be the right choice for you.
If you have questions, concerns about your mortgage, want to do a short payoff or short sale call us today at 516-300-2427. Our team of experts will be happy to help you.