How Can a Short Sale Affect a Seller's Credit

When compared to other options, such as foreclosure and bankruptcy, a short sale has a substantially better impact on a credit report. Though short selling your home will not improve your credit and certainly won't look good on there, it will help you keep your head above water and will not destroy you for the long run.

Direct Impact on FICO Score

While people who have their homes foreclosed could see their credit score dip by 300 points, people who short sell their homes are looking at a loss of 80 to 100 points, at the most. This is because you are still giving the lenders something and in the end, you are showing the responsibility that lenders value.

How Long Will I Have to Wait to Buy Another Home?
This is another area where short sellers benefit over their foreclosed counterparts. The waiting time for purchasing another home when you short sell is much shorter than the other options. In around 19 months, you can purchase another home at a decent interest rate. That means that you could conceivably be back on your feet in no time, establishing a new credit history.

Short Sale Deficiency Judgments

Not everything is positive when it comes to short sales, though. A seller could end up having to face a deficiency judgment, depending upon their home state. This payment could be as much as the full difference of the total loan amount and the amount that you pay.

The laws on these judgments vary depending upon where you live, so it is important to review these laws in order to know what you might have in store. If you are held responsible for the repayment of such a loan, then short selling might not be a great option.

It will also be up to your lender to determine whether or not a deficiency judgment is in the cards. Because of this, having a discussion with your lender can often help you figure out what might be in store. A real estate attorney might also have some insight on this issue.

The short sale option is good if you have no other options, but make sure that it is going to turnout to be a win win situation and you can also call a Real Estate agent help negotiate the deal with the bank and yourself. Wish you luck in your short sale experience.

About the author:
Scott English. Full time Licensed Agent in South Florida . Specializes in Waterfront properties,Rentals, relocation, New Construction, condominiums. Any and all Real Estate needs. Visit www.RealEstateExplainedblog.com to learn

More Finance information like Scott English's at Credit-Voitures.com

How much did you learn from this article?

Not yet Rated

Click the XML Icon to Receive Real Estate Articles Via RSS!

Additional Articles From - Home | Finance | Real Estate

This Article

	Blog This
	Print This Article
	Post Comment
	Add To Favorites
	Email it
	Ezine Ready
View in your own language (translate) Using Google™ Tanslator

Webmasters/Ezine Tools

Top Authors
Most Popular Articles
Ezine Notifications
Article RSS Feeds

Additional resources

Credit-Voitures.com

Link to Us
Contact Us
Privacy Policy
Terms of Service

Monetize Your Site

Get 1750 private label articles and 15 reports EVERY SINGLE MONTH!

Promote Ebooks with ClickBank
PayDotCom

CPA Empire
Modern Click

The Affiliate Classroom
The Science of Getting Rich

This site is hosted with

Finance News

Click the embed button to show this video box on your site

Click the embed button to show this article box on your site

© 2007 Credit-Voitures.com™ All Right Protected.
Use of our free service is protected by our Privacy Policy and Terms of Service

Disclaimer All articles published by www.Credit-Voitures.com are for informational purposes only.
All articles are not meant to be used for legal, medical, or any other type of advice.
If you require such advise, please refer to a certified expert.