Are there any credit consequences to a Short Sale?

Question

I want to short sell my home in San Diego, but I am concerned about credit consequences.  Will my credit be ruined if I short sale, or foreclose on my home?  Can my credit be repaired?

Answer

This question is asked very frequently and has many different variables involved.

• The thing to keep in mind is that the moment you go 30+ days behind on your mortgage payment, your bank has the right to report to all of the credit bureau’s that you are 30 days behind on your payments. When a late payment is reported to the three major credit bureaus, it does have a direct affect on your credit. After going through a Short Sale or a Foreclosure, most people have multiple 30, 60, and 90+ day late payments reporting on their credit report.
• 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.” 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 guage 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.

Can We Help You With A Short Sale in San Diego or in Your Local Market?  Do You Need A Credit Repair Specialist (REFERRAL)?

If you are looking to short sale your San Diego home quickly, we can help you with a Short Sale specialist in your area who is an expert in foreclosures and short sales in San Diego.  We also network with approximately 275 short sale experts (not just self-proclaimed, but who have actually successfully negotiated more than enough short sales to meet your needs) across the country who do their job very well.  If you need assistance with your San Diego short sale listing, then let us know.  Please call us at 858-707-5628.

Time is of the essence in a short sale or foreclosure negotiation.  Don’t wait if you are considering a short sale.  Time is fast and the next thing you know is that you have a letter of default, which often leads to bank owned property.  Get help with your short sale today!

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