Short Sale and the Negative Impact on Credit
Does a Short Sale hurt my credit report? This is a common question by homeowners looking to avoid foreclosure.
Does a short sale impact credit? This is often asked when sellers that need to avoid foreclosure are looking at their option. If you're thinking of doing a short sale in Martin County or Palm Beach County, it is something to consider. Most consider doing a short a good option if you facing a foreclosure however it is does have an impact. A short sale is usually not without credit impact however recovery happens faster than a foreclosure.
Many homeowner say that if there is an impact, I'll just let them foreclose. That is really an emotional decision and yet not likely the best decision. The goal of doing a short sale is to minimize the damage long term to your financial future. So consider that a short sale is like getting into an accident with your car in a parking lot, there can be some minor damage. Now imagine getting onto a major interstate, and having an accident going 65 miles per hour. You will see a lot more damage to the car and possibly yourself. This is like a foreclosure. If you are concerned that your home is going to be foreclosed upon, we are here to help you minimize the impact of your situation.
We often hear from our clients that the actual short sale alone had a minor impact to their credit. Most of the credit issues come from being late on mortgage payments. Many short sale clients have missed months or even years of mortgage payments. The more missed payments the bigger the impact it can have on your credit report. Additionally credit is impacted if other debts are being paid late. When the short sale is complete, clients have been able to start the road to credit recovery.
After years of helping clients avoid foreclosure, we have witnessed them recover once they resolved their distressed situation. There is life after a short sale.
If you find yourself in a distressed situation, your short sale experts are here to help you. To see what others say about your short sale team, see realtor reviews.
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Listing information last updated on September 22nd, 2017 at 8:07pm EDT.