Credit Repair Tips
Short Sales
What is a short sale?
A short sale is when the balance owed on a mortgage
is discounted for the debtor because they are unable to make payments. This is
made through certain negotiations between the bank and the homeowner. The home
is sold at an amount that is much less than they normally would have sold it
for, and less than the outstanding balance of the loan. Basically, the proceeds
and decision of the sale are given to the lender to pay off the debts of the
mortgage. These types of sales are done to prevent a home from going into
foreclosure. They are not as damaging to a person's credit as a
foreclosure, but they stay on a credit report for just as long.
How does a short sale affect my credit and
credit score?
Even though negotiating with your lender to allow
them to short sale your home is better than having it go into
foreclosure, it still damages your credit. A short sale does not come
up on your credit report as a "short sale" but rather as "foreclosure
proceedings started." This can lower your credit score by 200-300 points!
Although it does not look nearly as bad as a
foreclosure on your credit report, it can prevent you from getting any
mortgage for several years. Creditors see that in the past you had trouble
making payments on your last mortgage and it ended in a short sale, so they may
not trust you to pay them.
How long before I can buy another home after a
short sale?
After a short sale, a consumer must wait a decent
amount of time before purchasing another home. If they want to look for homes
before then, their interest rates will be through the roof! However, many
credit reporting bureaus inaccurately report information about short sales on
credit reports which can affect a person's decision towards buying a home. As
many as 79% of credit reports are reported inaccurately! If your home went into
short sale years ago, but is still being reported today, then you should about
dispute the information with the credit reporting bureaus.
How can I dispute the information?
If you have inaccurate, unverifiable, or misleading
information on your credit report, you can dispute the information with the
credit reporting bureaus. It is your legal right to do so! If you are
serious about cleaning up your credit, our company CreditLawGroup, is here to
help you through the process today. We have a low cost service and great
customer service. You will develop a close professional relationship with your
Paralegal, to know that your case is being handled correctly. To speak with a
credit analyst today, call 1-800-508-0041.
Click here
to find out more regarding our
credit repair services.
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