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Pat Hensley's Cary Homes for Sale

Remax United Homes, TownHomes and Condos for Sale in Cary NC

By Pat Hensley | Broker in Cary, NC

How will a Short Sale on your home effect your credit score?

How will l a Short Sale effect my future credit?

 The economy in our area is showing signs of recovery but some people are still struggling with their current mortgage.  If you are trying to decide if it's best to move on to find work, recover from
 a divorce or death of a spouse, you may feel it necessary to leave behind a home that is now
 worth less than the mortgage.
  
 Your lender may have required that the mortgage be delinquent in order to negotiate a “short sale” arrangement. However, by choosing not to pay the mortgage, you likely did serious damage to your credit history. There is no quick way to recover from that damage.

The term “short sale” is used to describe an agreement between you and your lender to sell the house for less than is owed on the mortgage. The term does not appear in a credit report.

Instead, the mortgage account may be reported as “settled,” or “settled for less than originally agreed.” It also will show the history of missed payments. Any account not shown as paid in full as originally agreed is considered negative. A mortgage debt not paid in full can have a substantial negative impact on credit scores.

Time is the key for rehabilitating your credit history. Make sure all of your other debt payments are always made on time, and reduce any debts you have as much as possible. Continue to use your credit cards, keeping your balances low and paying in full each month. That positive, current activity will help to somewhat offset the negative history for your mortgage.

However, the mortgage history won’t go away. The late mortgage payments will remain for seven years from the date they first became late. The further in the past the late payments occurred, the less impact they will have on credit scores. As the delinquencies become further in the past, your credit scores should improve, assuming you have kept all of your other payments current.

Still considering a short sale as an option?
Give me a call.  I have a team of experts that can help you navigate the maze of paperwork and
deadlines for you.  In most cases the Lenders agree to pay our fees.

We don't judge you.  You made a difficult decision based on what is best for you and your family.
We are here to help you move on.

Pat Hensley
Remax United
919-469-6530
www.TriangleNC.com 

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