Know How a Short Sale Will Affect Your Credit

effects of short sale on your credit If you have fallen behind on your mortgage payments and can no longer afford to stay in your home, do not resign yourself to foreclosure. If you take action you may be able to avoid foreclosure by doing a short sale, or a sale in which the mortgage lender authorizes you to sell your home for less than the balance of your mortgage.

At our Woodstock real estate group, we are short sale specialists and can help you through the entire process. While a short sale is preferable to being foreclosed on, it is important to know the long term effects of a short sale on your credit history before beginning the process.

So how does a short sale affect credit? One of the primary benefits of a short sale is that it will take less time to rebuild your credit and financial standing than would be possible after a foreclosure, not to mention avoiding the social stigma that comes with being foreclosed on. After a short sale, you can buy another home in as little as two years. Compare that with Fannie Mae’s 7 year waiting period after a foreclosure and it’s no surprise short sales are preferable when possible.

Aside from how long you’ll have to wait for a new home purchase after foreclosure, it’s important to know the short sale effect on your actual credit score. While this can vary greatly depending on the individual situation, in general short sales make less of an impact on your credit score than foreclosures. In practical terms, your credit report will only reveal that you were delinquent on mortgage payments prior to the sale.

If you are facing financial troubles and need help selling your home in Woodstock, give us a call. To learn more, check out this comparison of short sale vs. foreclosure.

At The Premier Group/Keller Williams  in Woodstock, GA, our experience ranges from consistently managing and closing short sale and distressed properties to marketing and selling luxury homes. When you decide to sell your home or purchase a home, don’t hesitate to contact The Premier Group. We are dedicated to being the most qualified specialists that you can turn to for all of your real estate needs.