All Articles Tagged "short sale"
How Mortgage Trouble Impacts Credit Scores
(New York Times) — IF you want to see how quickly you can ruin a great credit score, just skip a mortgage payment. Lenders use credit scores to measure how you handle debt. The number you’ll see most often is your FICO score. It runs from 300 to 850. The major credit reporting bureaus developed a rival, VantageScore, with scores from 501 to 990. Missed mortgage payments, serious loan delinquencies, loan modifications, short sales, foreclosures and bankruptcies all drag down credit scores. Because a mortgage is such a big slice of anyone’s credit profile, it carries more weight than other loans. Both FICO and VantageScore have studied and quantified those impacts. They reached similar conclusions: for people with near-perfect records, a single mortgage payment that’s 30 days late reduces a credit score enough to hurt. For anyone, a short sale — selling a home for less than the amount owed — can be almost as destructive as a foreclosure.
Short Sale vs. Foreclosure
Defaulting on your monthly mortgage payments leads to the either foreclosure or short sale. Both the processes have an adverse effect on your credit score.
Compared with the foreclosure process, the short sale process is always considered to be a better option because it gives the owner some time to make alternate arrangements to pay their mortgage. Additionally, house owners can also seek the government’s help if they do not want to face the consequences of a foreclosure.
Home foreclosures do not allow the owner to be a part of the sale whereas they have complete control when it comes to short sales. The downside is that most lending institutions do not agree to short sales because they lose out on an opportunity to sell the house at the price that they want for it.
A short sale specialist may encourage the owner to sell the house for an amount that is lesser than what they expect from the market. In spite of this, foreclosure listings are easier to find when compared with short sales listings. Depending on your credit report, you can avail a new mortgage only 5 years after the foreclosure process while the same can be availed in a time period of just two years with the help of a short sale negotiator.
It is highly recommend that owners who fall behind in their payments speak with their lender as soon as possible to discuss a short sale with them before it is too late.
Don’t Foreclose! Do a Short Sale
(CNNMoney.com) — Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.
Don’t Foreclose! Do a Short Sale
(CNNMoney.com) — Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.
