The Short Sale Solution should only be chosen after careful consideration of all your options.  Alternatives to Short Sale include foreclosure and mortgage remodification. Other factors to consider are the Short Sale Mortgage Debt Forgiveness Act, the timing of the transaction, and the effects of a redit score factor 22.

Foreclosure often occurs when homeowners lose their income or increase their debt to the breaking point. If you can't afford to make a payment, don’t rely solely on a loan modification to prevent Foreclosure.  

The US Treasury Department report for the 3^rd quarter of 2009 states that, "servicers implemented  680,153 new home retention actions, [yet] only 781, or less than 1 percent...had been converted to permanent HAMP modifications".¹

Loan modifications basically give homeowners a false sense of security and often just become long, slow foreclosures. In the 4th quarter the percentage of loan modifications that became permanent increased dramatically, but still remains way below 50%. We strongly encourage you to get a skilled negotiator to handle loan modification for you. AIM Property Solutions provides this service nationwide.

If you cannot make your payments as scheduled, your credit will be impacted. Whether you end up in a Short Sale or a foreclosure, the drop in your FICO score is significant.

However, choosing the Short Sale Solution can decrease the amount of time your credit score is negatively affected. After a Foreclosure, you may be waiting 5 years or more before you can finance another home. With a Short Sale, you will usually be able to finance another home after only two years.

In most cases, mortgage Short Sells are the better solution for homeowners who can no longer afford to make their payments. Short Sales allow homeowners to control the sale of their property and repair their credit score sooner. Always get a skilled negotiator to handle this complicated and time-consuming process. The act of making a decision to follow your own plan is empowering, and the sense of being in control can relieve a great deal of stress.