One of the most common questions I get asked as a credit consultant is; How can a short sale be performed without having to damage your credit? The answer is actually quite simple. Always try to prevent the damage to your report prior to the negative item(s) being placed on your report. One false rumor is that in order to qualify for a short sale you need to be late on your mortgage. I will be happy to explain why this rumor is false in another article, the main thing to understand here is that a short sale is a form of loss mitigation.
You are actually helping to minimize the damage your bank is going to suffer by dealing with this situation head on versus living in the home for 6-12 months with no payment and waiting for a foreclosure. The decision you need to have communicated to your bank is would they rather work with you, or against you.
When my firm is retained to help you keep your good credit intact while preventing damage on your credit report, we always like to start early. It takes much more time to clean up a damaged report, then to keep a clean report from being damaged, Although we have been successful in negotiating with Banks into removing short sale delinquencies after the fact, we like to send a certified letter to the bank that attempts to help our clients form an allegiance with the bank. By showing the benefits and cost savings the bank will receive simply by deciding to work with us instead of against us, we can now decide the best strategy to move forward with.
Although this can be accomplished on your own, this is a very difficult procedure and we recommend you consult with us or any professional company that has documented success in this field. There are a lot of "credit repair and short sale specialists" that have no certification at all in this industry, I don't say this to demean any other company, rather I hate to see anyone losing their money to a less then reputable company.
Using our proven strategies we start an alliance with the loss mitigation department of the bank you are working with, negotiate a settlement ahead of time, and before you know it it is possible to have your home sold for less then you owe on it, and walk away with your credit in tact. If you would like more information about this please feel free to contact me with any questions.
Hayden Gerson is the President of HPM Financial LLC and a Certified Credit Consultant. If you would like to contact him please visit San Diego Credit Restoration, or call me toll free at (800) 701-5022 ext 101 for a free comprehensive evaluation.