What is a short sale?

A short sale is a great alternative to Foreclosure. A short sale occurs when a property is sold and the bank accepts less than what is owed. Short sales are much better for the sellers credit.

Do I qualify for a Short Sale?

There are 2 main conditions for a good Short Sale candidate:

1.  They are behind on their mortgage payment and are unable to meet all of their monthly obligations.  Some reasons could include loss of job, divorce, etc...

2.  They have no equity in the home.  They are not able to sell their home and pay off all the outstanding loans that are secured against their property.

How can you help me with the Short Sale process?

We can help you qualify for a Short Sale Transaction, aggressively market your home and negotiate with the bank on your behalf.

How will my credit be affected by a Short Sale?

When the actual Short Sale is completed, most banks will report to your credit report that your account was “paid in full for less than the full amount.” Your credit report may also be marked as “settled.” part of my negotiations will be to have this recorded on your credit in the best possible manor to help keep you credit good and your score as high as possible. It is important to keep in mind that each lender has a different way of reporting that a Short Sale was done, but this is the most common language that is seen. If your home were to go to Foreclosure you would most often see the bank report “Foreclosure” on your credit report.

It is difficult to gauge how much of a credit scoring affect a Short Sale has vs. a Foreclosure. Credit experts will agree that neither a Short Sale nor a Foreclosure is favorable to your credit or credit score, however, the impact of a Foreclosure is much worse. We strongly advise you to work with a Credit and Credit Scoring Expert for more specifics on this topic, and ways in which to improve your credit after the Short Sale is complete.

If I decide to not pursue a short sale and just let a foreclosure happen how will this affect my credit and life?

The single largest reason that we focus on assisting homeowners that are in a difficult situation is to help their future. Foreclosure can be devastating, not only to ones credit but to their overall well-being.

A foreclosure is reported to the credit bureaus as a Foreclosure. This will stay on a credit report for 7 years. Once the 7 years has elapsed and your credit has recovered it may be time to purchase another home. On every mortgage application there is a section that will ask if you have ever had a foreclosure or bankruptcy. This will always inhibit your ability to obtain a mortgage.

Depending upon your profession or your need to obtain future employment foreclosure can also have devastating impacts. For example, if you have a profession that requires a security clearance your employer may view a foreclosure as a risk to the sensitive information in which you have a security clearance. Or for those companies that do credit checks before they hire an employee you may have a very difficult time competing with the many other job applicants that do not have a foreclosure on their credit. This will especially apply in a position that you may handle or manage money.

There are very few if any circumstances that a short sale is not in a homeowners best interest compared to going through a foreclosure or bankruptcy, but you should view all of your options and make that decision for yourself. Please contact us to find out what those options might be and we can provide with the necessary information to make the best decision for you and your family.