Been chatting with my cousin lately, and he's kinda stuck in a tough spot with his mortgage. He mentioned something about maybe doing a short sale, and honestly, I realized I don't know much about it. I mean, I get the basic idea—selling your house for less than you owe—but I'm wondering if it's really worth all the trouble. Heard it can mess up your credit pretty bad, but then again, maybe it's better than foreclosure?
Anyone here been through it or know someone who has? Curious about how it actually plays out in real life. Like, is it a huge headache dealing with banks and paperwork and stuff? Or does it actually help you move on quicker? Just trying to get a feel for whether it's something worth suggesting to him or if he should steer clear.
Went through this with a friend a couple years back. Honestly, short sales can be a mixed bag. Yeah, your credit takes a hit—but usually not as bad or as long-lasting as foreclosure. The paperwork and bank negotiations can drag on (think months, not weeks), so patience is key. But once it's done, it does help you move forward without the foreclosure stigma hanging over your head. If he's already underwater and struggling, it might be worth considering...just tell him to brace himself for some headaches along the way.
I get the appeal of a short sale, but honestly, refinancing might be worth another look before diving into that mess. A couple years back, I was underwater too and thought short sale was my only option. But after talking to a few lenders, I managed to refinance at a lower rate and stretch out the payments. Sure, it extended my mortgage timeline, but it kept my credit intact and saved me from months of bank headaches...might be worth exploring before committing to the short sale route?
