How will my credit be affected on a Short Sale, is there any advice you can give me?
Disclaimer: I am not a credit expert and I am responding to you based only on my understanding of the affects on credit. Making late payments on any debt will lower your credit score based on the amount of days you are late on your payment. It is my understanding that on average, a short sale on your credit report is a negative 150 FICO points versus a foreclosure on your credit report is a negative 250 FICO points.
Please note that these figures change on a regular basis. I highly recommend that doing a short sale is better than letting the house go to foreclosure. If your house goes to foreclosure, it will be 5 to 7 years before you can purchase another home. The short sale on a credit report versus a foreclosure shows good intention on your behalf. You took action against the debt and negotiated a settlement versus just walking away. A short sale also allows you to clean up your credit with the possibility of purchasing a new home after 2 years. I do refer you to a credit counselor after selling your home on a short sale.
My friends keep telling me to do a loan modification. Are there any benefits of a loan modification versus a short sale?
The most obvious benefit of a loan modification (loan mod) is that you get to keep your house. Many people want to do a loan mod because they want to keep their house. The drawback on a loan mod is that most lenders will adjust your payment; however, they will not adjust the balance of the loan on the property down to the current market value.
Loan mods are free through the lenders and I would recommend if you are interested in keeping your house that you attempt the loan modification yourself. Please be aware you will have to be very persistent and very patient to go through the extremely lengthy loan modification process.
During the loan modification process, will the lender stop all foreclosure action against me?
I cannot guarantee they will, since most of time once the lender has paid an attorney to do their job, the attorney will continue on with foreclosure process. The lender still has the right to continue with the foreclosure action against you. Many times the homeowner can’t afford the loan modification given to them from their lender.
Should I do a Deed in Lieu of Foreclosure?
Lenders want money not your house. A Deed in Lieu of Foreclosure gives the property back to the first mortgage company who may or may not waive a deficiency judgment. If there is a second or third mortgage on the property, you probably don’t qualify because you cannot provide clear title to the first lender. In addition, if they did take the Deed in Lieu of Foreclosure, you would also receive a deficiency judgment for the second and/or third mortgage. When you received a mortgage on your property you also gave the lender a mortgage note. You promised to pay this debt with or without the property being attached as collateral.
What’s the next step for me?
Take Action Now by calling us at 407-888-3433 or call the Sell Fast Realty Agent who provided you with this Special Report. You can also go online at www.SellFastRealty.com or www.FreeFactsAboutForeclosure.com and fill out the contact information. Please be sure to fill out the form completely for a quicker response. We will contact you personally within 24 hours to tell you how our expert short sale team can relieve your stress….. Our #1 Focus is YOU! I am honored that I can educate you with the true facts about foreclosure. I am sure you have some more questions after reading this Special Report and we look forward to discussing them with you on a personal and confidential call with you.
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