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What Can a Short Sale Do to Your Credit?

shortsaleeffectcredit

While the real estate market is rebounding from the worst housing crisis to hit the United States since the Great Depression, hitting homeowners the hardest from 2007 to 2009, many people are still struggling to stay afloat financially and pay their mortgages. As unfortunate as it is, short sales continue to account for a larger-than- desired part of the nation’s home sales.

A Short Sale is a Better Option Than a Foreclosure

For homeowners who aren’t able to make their mortgage payments, a short sale can seem like an attractive option. But there are some things to keep in mind if you’re considering to opt for a short sale instead of a foreclosure. While a short sale can have a major impact on your credit rating – even as much as a foreclosure – it only impacts it by a few points in most cases. Before short selling your property, though, you need to carefully assess your specific situation.

What to Consider When Debating Whether to Short Sell Your Property

There are a few considerations you have to take into account before finally deciding to short sell your property. For instance, how many mortgage payments have you already missed? Also, how will your lender report the short sale? If you haven’t missed any mortgage payments and have a good credit history, you might be able to negotiate to have the short sale listed as paid as opposed to settled. In this case, your credit score might not be negatively impacted at all.

If you are considering a short sale, talk to the Law Offices of Stephen K. Hachey. We examine all the details of your case and be with you every step of the way.

Stephen K. Hachey can help you wade through this difficult process to reach a positive solution. Call 866-200-4646 today!

***The opinions in this blog are those of the author whom takes full responsibility for the content. Like all other content on the site, this does not constitute legal advice and is for general information purposes only.***