Arizona Short Sale Realtor Cody Sperber Explains

 

 

The Credit Consequences Of A Short Sale and Foreclosure vary slightly. The general consensus is that a Short Sale will show up on your credit report as a “settlement”, “settlement for less than owed” or a "pre-foreclosure in redemption". Also, since most lenders will not consider allowing a Short Sale until a few payments have actually been missed you may also have a few “lates” on your Credit Report. Neither of these marks is a good thing to have but it’s possible to get them off of your credit report within a few years or less. Now we have asked many credit experts and in general, a Short Sale can drop your credit score by 100-200 points. Most experts vary on the amount it will affect your credit, but it really does not matter. Expect that your Credit will be severely affected during this process and immediately after the Short Sale is accepted; enroll yourself into a good Credit Repair Program!  I recommend http://www.genesiscreditgroup.com/ when dealing with any Credit concerns, and advise you to begin credit repair immediately after the Short Sale is completed! There is also the possibility that through negotiation with the lender you can avoid having the Short Sale reported to a Credit Agency.

 

A Foreclosure on your Credit Report can take 7-10 years to remove and can cost your Credit Rating (FICO) up to 200-280 points which is a very big hit. So, if you have no better alternatives pursue a Short Sale aggressively and Avoid Foreclosure. By educating yourself, and getting into Credit Repair, you can be proactive in limiting the Credit Consequences Of A Real Estate Short Sale.  CLICK HERE TO CONTACT ME NOW!