Late Payments Are Typically What Have the Major Affect on Your Credit Score

Your Credit Score
When you foreclose on a home your credit will be altered for about 5+ years, to say the least. However, when you do a short sale your credit is also affected, but for a much shorter time period and less damage is done. The truth is there is no concrete answer as to how many points it will affect your score. Every person has his or her own FICO and each individual’s score will vary. What I can tell you is the late payments are typically what have the major affect on a borrower’s credit. Most people are usually able to qualify for a new loan and buy a new home within 2 years after a short sale vs. the 5+ years if you were to go into foreclosure. Since everyone is different, it’s best to consult with a credit repair-person or your real estate professional in more detail.

FAQ’s
Why don’t I file Bankruptcy?
Short Sale vs. Bankruptcy – When faced with foreclosure many people tend to turn to bankruptcy as an option of solving their problem. Now there is a large difference many of the “professionals” fail to tell you. Filing for bankruptcy will consolidate your debt and can wipe out your liabilities, but it will not save you from having a FORECLOSURE put onto your credit report. Instead, now you will have both a bankruptcy and a foreclosure on your credit. If you plan on eventually turning back your property, you WILL STILL HAVE A FORECLOSURE ON YOUR CREDIT REPORT. Trying to conduct a short sale while in bankruptcy can hold up the process, but it is not impossible. It will just take some more paperwork. My best advice is to consult with a great bankruptcy attorney prior to making any decision should you have additional debt you are unable to control besides your property. One key point to keep in mind is if your home is the only debt that is creating an uncontrollable situation for you then a short sale option is most likely your best bet vs. a bankruptcy. If you have other uncontrollable debt then a bankruptcy might also be needed in addition to a short sale. You should consult with a bankruptcy attorney should this be the case.

What do I do after a short sale?
After your short sale, the stress of your housing payment is extinguished and it’s time to get back on track to restoring your credit. Many people will rent for a while until their credit is fixed and then it’s time to get back into another house. With the right team of people working for you, you will be in a new house before you know it.

We are the right people to ask when you are “upside down; ie more debt owing against the property than the actual property is worth.  Get a handle on your situation with the right information and the right people.  Contact us for a full package of information, or just to talk.  If you are “upside down“, it is time to take action.

Contact us about your probate questions too.  Parents may die with a reverse mortgage, or an “upside down” property which you are required to sell.  We can help you with this problem as well.

Mona Salem 310.925.4782  | Mona Salem Short Sales & Real Estate Solutions | Realtor Broker | CA DRE # 01012220

Mona Salem Realtor/Broker  | Mona Salem Short Sales & Real Estate Solutions |   CA DRE # 01012220

Mona Salem Realtor/Broker  | Mona Salem Short Sales & Real Estate Solutions |   CA DRE # 01012220

Mona Salem Realtor/Broker  | Mona Salem Short Sales & Real Estate Solutions |   CA DRE # 01012220

Mona Salem Realtor/Broker  | Mona Salem Short Sales & Real Estate Solutions |   CA DRE # 01012220
Mona Salem Realtor/Broker  | Mona Salem Short Sales & Real Estate Solutions |   CA DRE # 01012220