Credit Consequences Of A Short Sale
Are there any credit consequences of a short sale?
-Yes, there are credit consequences with a short sale. Just like some loan, if you are missing payments on your mortgage you are going to have damaging marks on your credit for missing those payments. Now with a short sale, lets say you forget a few payments. You are going to have harmful marks with a short sale. However, if you go through the complete foreclosure process you will have many more negative marks since you will probably miss more payments. Also, when you do complete a short sale there will be something on your credit report that will declare debt settled or debt settled for a lesser amount. While, if you have a foreclosure on your credit report it is going to state debt not settled or foreclosure or something of that type. So, you will be much better off completing a short sale since the marks on your credit will be a great deal less.
In addition worth noting, Fanniemae at the moment has a rule out there that if you close a short sale you can purchase another home after a 2 year period. Still, with a foreclosure you are going to need to put off for 5 to 7 years before you obtain a house again.
So, while there are harmful consequences from closing a short sale, those negative penalties are far less than the consequence that a foreclosure would have on your credit. The short sale is merely a better answer for the home owner and the lender.
Contact Josh or Sarah to talk about some concerns that you may have concerning your credit and they can help you clearly see the advantages of a short sale to get your finances back on the correct path.
Furthermore, check out our additional video blog sessions to learn more about the short sale process and how you can benefit from closing a short sale with Josh and Sarah.
Get more help from short sale Realtors, Josh and Sarah, at Short Sale Shift presented by the Short Sale Specialists of Minnesota
