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Homeowners who receive a foreclosure notice typically have about 70 days to act. Reaching out to a knowledgeable real estate agent specializing in short sales can be advantageous. These professionals can assist homeowners in selling their property before it officially goes into foreclosure, thereby mitigating long-term damage to their credit.
The short sale process often involves selling the house for less than what is owed on the mortgage, which can indeed help save the homeowner's credit rating. However, homeowners should be aware that forgiving the excess debt may result in receiving a 1099 form from their lenders, reflecting the forgiven amount as taxable income.