Dan Rochon is back with even more real estate advice. This time, Dan explains how and why a short sale impacts your credit score. Learn valuable pointers fro…
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The Pomerleau Team gets asked about Missing Mortgage Bank Payments all the time. Do you know what the bank does when you start missing payments? How will it …
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The affects on credit scores after the completion of a short sale has always been a major concern for homeowners. Short sales have a much favorable impact on your credit than a foreclosure. And the majority of homeowners recover and are cable of buying a more affordable home after 24 months.
One of the major concerns that a short seller of a home (someone forced to sell their real estate for less than the mortgage owed on it) is the effect it will have upon their credit according to Portland real estate agent and short sale expert Dennis Gorton.
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How Fast Can You Increase My FICO SCORE? After a Real Estate Short Sale www.ThachRealEstateGroup.com
ShortSaleSellit.com Kim and Kris Darney discuss the implications of a short sale on a person’s credit score. They compare Short Selling to Foreclosure and the different ways each affect a person’s credit rating. Kim and Kris are Short Sale experts and can help homeowners in the Inland Empire who are upside down in their mortgages. They serve clients in Chino Hills, Rancho Cucamonga, Claremont, Upland, Ontario, Glendora, Alta Loma, Fontana and San Dimas. There is no charge for their services. All fees are paid by the lender. Contact them today for immediate help. Call toll free at 877-391-2338.
short sale credit
A Short Sale Home Will Save Your Credit Score
There are many things that can destroy your credit. Your home foreclosure and declaring bankruptcy will wipe out your credit completely bringing you to the poorest level of credit rating available. Therefore, if you are a homeowner, who is suffering financially, a short sale home will save your credit score.
Homeowners who have lost their jobs in this current recession have found themselves between a rock and a hard place. Knowing full well how important having credit in the type of world we live in plays a big role in the decisions they have to make. With that said, it is important to each homeowner to know all his/her options before making a decision.
An educated decision means fully understanding the impact each situation will have regarding credit score. For example, many people just don’t know which way to turn, and allow for closure on their home.
Others will try to do everything in their power to avoid destroying their credit, completely and opt for a deed-in-lieu of foreclosure. Unfortunately, either of these choices will have the same impact on your credit score, dropping the homeowners’ credit score by up to 300 points in any typical situation!
Other homeowners who were aware of this will try to find another solution, in the form of a short sale. While some specialists claim that a similar drop of between 200 and 300 points will occur even with the short sale, others maintain that some homeowners will benefit with only a 100 point loss.
Therefore it’s probably safe to say that each situation is different and unique. Regardless of what your situation may be, it is highly recommended that you do the research to find out what the best option would be for you.
Of course, there are qualifications and prerequisites that must be met in order to perform a short sale.
The first and foremost point that must be met. Is that the homeowner must be behind in their mortgage payments for at least 59 days. A short sale package from the banker must be requested. These forms must be filled out completely and must be accompanied by a couple of bank statements, pay stubs in the previous two years income tax returns.
After all this information has been amassed, it must be sent off to the banker, either by mail, courier or by fax. An appraisal of the property will then be in order. This is the bank’s responsibility. In the meantime, the homeowner should find a realtor, who is willing to do a short sale on the home. There is a difference when it comes to short sales, as the realtor should have some kind of experience with a situation such as this and has to accept a lower commission.
If an approval of the short sale has been issued by your bank, it must be sent off to a closing attorney. Should you find yourself in this situation, it is important that you keep a cool head in order to grasp all of the information, educate yourself to the fullest, and make the right educated decisions necessary. Do whatever you can in order to resolve the situation before it worsens.
short sale credit
How Does a Short Sale Impact My Credit Score?
Due to a lot of homeowners not qualifying for assistance under The Obama Mortgage Modification Program, it is very important for you to know the ins and outs of the foreclosure process. When you have all the information on how it works, you can increase your success in delaying your foreclosure process.
With the way the economy is nowadays, it is even more important to make sure you have all the facts. One of the most important things you need to know is the process and the time frame of it. Please note that the time frame can vary greatly due to where you live. It can change from city to city, county to county, and state to state. It can also vary depending on which bank you have your loan through. They have their own rules and regulations. It will also depend on what type of loan you have. All of this must be factored in.
Now you may ask, how does a foreclosure work? A foreclosure pretty much follows the same in all instances due to the fact that State Laws are Federal and do apply for most parts of the United States.
there is a detailed outline of the steps a bank must take to foreclose upon your home. Normally at around three months of your last payment made to them, they will file for a foreclosure on your home through the courts.
Once your financial institution has filed through the courts for the foreclosure, you will receive a notice in the mail or on your door that your lender has filed a judgment against you. You still have the right to work out a negotiation with your institution to repay your loan. This is probably the best time to try to do this if you wish to save your home.
After receiving your notice, you do have the right to acquire a court hearing in your Circuit Court of the county you reside in.
This is one of the things that can effect how your foreclosure comes about. Depending on the number of hearings the court already has, this could delay your foreclosure process from a couple weeks to a few months.
If you find that your hearing result is a denial- which most of the time, it is, and you cannot come to terms to repay your loan and negotiate with your institution, your next thought maybe to file for bankruptcy. This will have an effect on your foreclosure as well because it could delay it more. Please note that this is not a step to be taken without a lot of thought.
As I mentioned about the denial of your hearing, be prepared for this. Most cases are denied. The denial rate is 95%. The court will find for your bank and tell them to take control of your home. Your home will then be put up for sale in your local auction. You will have around 1 to 3 weeks to vacate the premises or the local authorities will come and make you leave.
You must legally fight the foreclosure process. There are ways to do this. You just need the know how. The more effort you put into fighting, the more you will have the chance of delaying the inevitable.
For more information on how to qualify and learn how to apply for Obama’s Loan Modification Program you can visit:
Gerald Lucas, ‘The Short Sale Authority’ discusses how many points you’re likely to lose from your credit score if you sell your property by short sale. visit performanceshortsale.com for more helpful tips on short sales.
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Get expert advice on short sale credit plus foreclosure and credit. What do homeowners with an upside down house need to know. If you sell short or mortgage default, when can you buy a home again? Learn whether a short sale v. foreclosure is worse for your credit. Understand the difference between a credit score and credit profile, and learn how your credit score affects you.
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