When considering the primary difference between a Short Sale and a Foreclosure your credit is most often the item that will be impacted the most.
A foreclosure will have the most drastic results on your credit dropping your scores anywhere from 300-380 points and will continue to be reported for 7-10 years after the foreclosure is complete (in today's market that could easily be 6-12 months from your last payment). Many lenders in today's market are requiring up to 5 years before you will be eligible for a another loan (lender guidelines, your credit score and income requirements will vary from lender to lender).
As a rule Short Sales, completed by knowledgeable specialist, will negatively impact your credit scores about 100 points. Because most lender report Short Sales as "settlement" or "settled for less than owed", you could be in a position to obtain a new loan, for your next home, in about 24 months from the short sale closing, assuming your credit scores, income, reserves etc. meet lender guidelines.
When weighing the credit score impact, timeline for negative credit reporting, possible $3000 in relocation assistance and the tax relief from the Mortgage Forgiveness Debt Relief Act of 2007 a Short Sale makes more sense for most homeowners.
We are here to get the job done for you. We are local Real Estate Brokers that know the High Desert market (Apple Valley, Hesperia, Victorville and surrounding cities) specialize in negotiating and closing Short Sales at no cost to you. By using our services you can be relieved from that burdensome mortgage and get on with your life.
Get more information to start your Short Sale by calling us toll free at: 866-612-8975 or fill in the confidential form below.
