Many homeowners wonder will a short sale hurt my credit after going through foreclosure. Little information is made public about the short sale process and what kind of damage happens to credit afterward. You have to understand what a short sale is and how the mortgage is treated before you can consider any negatives on your credit report. A short sale can be best described as a bank or lender shortening the amount of money that you still owe on your mortgage. The final sale price is all that a mortgage owner will receive when you decide to short sell your property. This does get you out of your mortgage and the amount that is forgiven in the sale is what you should be concerned about.
Will a Short Sale Hurt My Credit
Changes to the bankruptcy laws in late 2007 updated the way that lenders can report negatives on your credit report. While you are given the opportunity to dispute any information, mortgage lenders are allowed to report the actual amount of losses that were not recovered from a short sale. These losses can include inspection fees, appraisal fees, cleaning fees and any fees related to removing your name from the mortgage for good. A negotiation with a lender that approves the short sale could change the way that your credit report is updated. Homeowners that try to be their own negotiator are usually the ones that end up on the losing side of the equation. It takes professional negotiation skills to get the most out of a short sale and finding help fast is certainly necessary.
The good part about short selling a property is the fact that you can apply for a new mortgage in a must faster time period. A completed foreclosure is the most damaging to personal credit and complicates the new loan process. Banks are aware of the high numbers of foreclosures and have made special exceptions for homeowners that short sell their home. The effect on credit from a short sale is definitely not as bad or hard to recover from as actual foreclosure. We help to bring this information to light for struggling homeowners that are running out of or have run out of available options. Our website is updated frequently with the most recent information about foreclosure. We know how to stop it and help you avoid the negatives on your credit from foreclosure.
“Will a Short Sale Hurt My Credit”
Avoid Foreclosure experts work everyday with homeowners that have no hope left. One of the hardest decisions to make is to leave your home. We know these struggles and help find every possible solution for homeowners. Call us at 1-800-589-4106 right now. We have seen the worst mortgages and the fiercest of lenders. We know what goes on behind closed doors in meetings about how to throw you out of your house faster. You do have hope with a short sale. We can help you understand everything better so you don’t have to wonder will a short sale hurt my credit.