Like HowStuffWorks on Facebook!

10 Benefits of Short Sale over Foreclosure


2
It can help the seller avoid scams.

Facing a foreclosure on one's property is disheartening enough. But there are dishonest opportunists waiting for the chance to pounce on stressed, vulnerable homeowners, potentially making matters much worse.

A number of well-publicized scandals related to foreclosures have taken place over the last decade. Many involve scam artists who offer money-back guarantees, catchy slogans and promises to save homes from foreclosure in order to get access to struggling homeowners' funds. The homeowners often come out of these fraudulent deals owing even more money and with no relief from foreclosure.

Opting for the short sale route will greatly diminish opportunities for scam artists to dig their claws into vulnerable homeowners. The short sale process works very much like a regular sale, and the homeowner will get to know the professionals with whom they're working. This will all but eliminate the possibility of a scam artist becoming involved in the transaction [source: Freddie Mac].


More to Explore