I wanted to clarify exactly how a short sale does affect your credit. Does a short sale damage your credit? Yes. Consider if the benefits from a short sale outweigh the credit damage.
If you are in foreclosure, your credit has already been damaged. What happens if you do nothing and allow your lender to foreclose? The credit damage will be much worse than a short sale.
In addition you will not be eligible to buy another house for 5-7 years. With a short sale you are eligible for another mortgage in 2 years.
You will have to disclose the foreclosure on any future credit application. When you apply for any loan they will ask if you have had a foreclosure. They do not ask about a short sale.
Are you considering a short sale for a reason other than foreclosure? Maybe a job transfer or relocation? A short sale may still be worth it, especially if you canâ€™t sell the property for enough to pay off the mortgage.
If you stay current on all your other debts, such as utility payments and credit cards, then the credit damage will be minimal. Upon completion of the short sale, your credit score will drop between 50 and 100 points.
However it will rebound fairly quickly. The other benefit is that you will have less debt. (A lot of debt hurts your credit score.) You will have a lower debt to income ratio, which will boost your credit.
In a couple of years your credit will be back to normal and you can buy another home. Most people are able to rent another home for less than their mortgage payment.
In one example, a homeowner in foreclosure found a larger home with a large, fenced backyard for their kid and a garage. Their prior mortgage payment was $3,500.
They rented the nicer, bigger house for $1950 a month. Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at firstname.lastname@example.org. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 925-754-1611
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Pittsburg loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Shonn Thompson.
Shonn is a Real Estate Agent at Better Homes Realty.
Phone: 925-754-1611. email@example.com.
View My homes for sale at www.shonnthompson.com.
Shonn Thompson specializes in loan modification assistance and short sales in Pittsburg California Pittsburg Loan Modification Help, Pittsburg Short Sales. Pittsburg Short Sale Realtors. Pittsburg CA Short Sales. Pittsburg Realtor.
Copyright 2012 SFI Marketing Institute, LLC. All Rights Reserved.
Shonn Thompson, Better Homes Realty, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Shonnâ€™s personal views and do not reflect the views of Better Homes Realty.
This information on Pittsburg Short Sales Arenâ€™t The Credit Disaster Many Portray Them To Be is provided as a courtesy to our viewers to help them make informed decisions.