Bellevue WA – I read in the newspaper that a short sale will destroy the seller's credit. The article made it sound as though a short sale equaled doom for your credit.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
I wanted to clarify exactly how a short sale does affect your credit. Does a short sale damage your credit? Yes. Consider if the benefits from a short sale outweigh the credit damage.
If you are in foreclosure, your credit has already been damaged. What happens if you do nothing and allow your lender to foreclose? The credit damage will be much worse than a short sale.
In addition you will not be eligible to buy another house for 5-7 years. With a short sale you are eligible for another mortgage in 2 years.
You will have to disclose the foreclosure on any future credit application. When you apply for any loan they will ask if you have had a foreclosure. They do not ask about a short sale.
Are you considering a short sale for a reason other than foreclosure? Maybe a job transfer or relocation? A short sale may still be worth it, especially if you can't sell the property for enough to pay off the mortgage.
If you stay current on all your other debts, such as utility payments and credit cards, then the credit damage will be minimal. Upon completion of the short sale, your credit score will drop between 50 and 100 points.
However it will rebound fairly quickly. The other benefit is that you will have less debt. (A lot of debt hurts your credit score.) You will have a lower debt to income ratio, which will boost your credit.
In a couple of years your credit will be back to normal and you can buy another home. Most people are able to rent another home for less than their mortgage payment.
In one example, a homeowner in foreclosure found a larger home with a large, fenced backyard for their kid and a garage. Their prior mortgage payment was $1,500.
They rented the nicer, bigger house for $850 a month. Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at paulandc@yahoo.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (206) 261-7355
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Bellevue loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Paul Nelson.
Paul is a Real Estate Agent at Force Realty. Bellevue Short Sales Realtor:
Phone: (206) 261-7355. paulandc@yahoo.com.
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