Many people think that once they find their home, everything will be fine from there; However, many people are discovering that this is not always the case. In many cases, people do not know what life will bring. Unfortunately, many homeowners find themselves in financial ruin and unable to pay their mortgage at all. There are many different reasons why this situation may have occurred. Many times, loss of income is the reason people are unable to make their mortgage payments. There are options available to them so they don’t have to go through the dreaded foreclosure process or be evicted from their homes.

Some people first try to sell their homes on the typical market so they can make a sizable profit. They eventually realize that the housing market is down so much that they won’t be able to get the same money back.

Many real estate agents suggest that when homeowners find themselves in a stressful situation that makes them no longer able to make their mortgage payments, a short sale is the best option. When homeowners make a short sale, they sell their homes for less than what is owed on their mortgage. The lender agrees to accept that amount to cover your loan payment. This price may be well below market value.

A short sale helps a homeowner because it helps their credit because they will no longer neglect their mortgage payments. They will not have to foreclose under this process and the stress will be gone. Many people are benefiting from the short sale option.

A short sale has its advantages and disadvantages; however, it is much better than having a foreclosure on a credit report. A foreclosure not only stays on your credit file for seven to ten years, it also lowers your credit score by a hundred points. A short sale on average only affects the score by forty-five points. So the best option for homeowners is to short sale and start over.