The Short Sale Advantage / Saving Your Credit Through a Short Sale!
By: Phoenix, Arizona Short Sale Realtor Cody Sperber
Dear friend,
If you are reading this it's most likely you are behind in you mortgage, in arrears so much the bank is threatening to foreclosure and you don't know which way to turn.
Let's get one thing straight, if you can't afford to make your payment and your lender is uncooperative towards doing a loan modification, here's the truth about your situation.
YOU ARE GOING TO LOSE YOUR HOME!
And if it's inevitable, you have a responsibility to put yourself, your spouse and your family in a position to recover as quickly as you can.
I'm sorry for being so harsh but I do so because I want to get to the heart of the matter so you the homeowner can make an informed decision about what your options really are.
It's my belief the best option for you is an Arizona Short Sale. In order to understand why we must review how a foreclosure and a bankruptcy affect your credit.
First of all a foreclosure will lower your credit score as much as 300 points. Not could but will. Furthermore as a result of your foreclosure, any creditor is forced to refuse you any financing for the next three years after your foreclosure. Not just another home or car. But all credit down to something as innocuous as a TV. No one and I mean no one will extend you any credit or financing for anything for two years! The foreclosure itself will stay on your record for seven years.
A bankruptcy is the absolute worst hit you can have on your credit score. Not only does your credit score lower it remains there for 10 years. What's more depending on what type of bankruptcy you file for, there is the risk of still losing your house if the judge decides it must be sold to pay off creditors. (Chapter 7) And while you may be able to get new credit in less than two years it will be at he cost of much higher interest rates since you have been deemed a credit risk.
Or in the case of a chapter 13 filing, rather than having to liquidate all assets, in order to keep your property you have to agree to pay your creditors through future income. Even if you pay all your creditors the bankruptcy remains on your credit history. Nor are you allowed to make new debts or sell any assets at all without the courts permission.
So, why an Arizona Short Sale? It's simple. The short sale is the best way to shed your self of a bad mortgage, and move forward.
Does that mean your credit will be untouched? No the truth is it is instead of appearing as damaging as a foreclosure or bankruptcy it will appear as a settlement of debt which has a much more positive impact on your credit score.
Yes, your credit score will be lowered somewhat, and you will still be looking at possible higher interest rates. But you will still be able to apply for credit immediately. And though it is supposed to remain on your credit score for seven years you may have success in getting removed before that time by finding a good credit repair agency to work with.
Does your credit score lower similar to a foreclosure? Yes depending on who you talk to as much as 200 points. Here's some key point to keep in mind however, if you are in arrears your credit starts to take a hit the moment your mortgage is reported to all 3 credit agencies. So the damage is primarily done by the time you get around to doing a short sale, bankruptcy or are foreclosed upon.
So once again the distinction is how any one of these 3 outcomes appear on your credit history and how it affects your future. So let me belabor the point and state once again, with a short sale by having a settlement of debt it shows that you took responsibility for your situation and worked out an amenable solution with your creditor. Which in turn will allow you to be in a position to still apply for future credit and give you the opportunity to repair your credit score at a much faster rate.
To your success,
Cody Sperber
P.S. Be sure to check back next week for our next subject.....
P.P.S. I do real estate short sales in the following Arizona Cities:
Chandler Short Sale Realtor, Mesa Short Sale Realtor, Gilbert Short Sale Realtor, Tempe Short Sale Realtor, Phoenix Short Sale Realtor, Avondale Short Sale Realtor, Anthem Short Sale Realtor, Tolleson Short Sale Realtor, Surprise Short Sale Realtor, Glendale Short Sale Realtor, Scottsdale Short Sale Realtor, Paradise Valley Short Sale Realtor, Fountain Hills Short Sale Realtor, Ahwatukee Short Sale Realtor, Carefree Short Sale Realtor, Cave Creek Short Sale Realtor, Higley Short Sale Realtor, Queen Creek Short Sale Realtor
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