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If one is trying to short-sell a condo in Broward Country, FL, is it b

Customer Question

If one is trying to short-sell a condo in Broward Country, FL, is it better to be in arrears, or up-to-date on all payments? If heard it both ways from different real estate agents who have handled many short sales.
Submitted: 5 years ago.
Category: Real Estate Law
Expert:  max713 replied 5 years ago.
The clear cut answer is it's always easier to negotiate if you're paid up. Because you're negotiating with a bank based on financial hardship, here, you could argue that it makes more sense to be in arrears. However, you will possess more bargaining chips with the bank if you're paid up.

Remember, short sale is better than foreclosure, but you it will still cause a significant hit to your credit (200-300 points).

On the other side, there are some benefits. First, there's a chance that the bank will forgive the difference between what is owed and what the property sells for. Second, you can apply for another mortgage within 2 years (rather than 24-72 months for a foreclosure proceeding).

Best of luck,

Thank you.

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