The Credit AffectsForeclosure
Without a doubt sellers will incur more damage on their credit report by going through foreclosure. Typically your credit score will take plunge between 200 to 300 points. As a result you may experience an increase with insurance premiums, higher payments and interest rates on credit cards and denials for other small loans.
Short Sale - Not Late on Mortgage Payments
If you are on time with you mortgage payments credit scores may possibly have minimal to no loses. Also these people may be eligible for a mortgage immediately after your short sale is complete.
Short Sale
Short sales have a far less damaging affect on a seller's credit report. Credit scores typically lose between 80 to 100 points, only when you've been late on your payment. What happens to your credit down the road? It takes around three to five years after a foreclosure before a lender will offer a sensible interest rate, whereas for a person who went through a short sale can typically get a good interest rate after 12 to18 months or less depending on how many late payments you have.
What shows up on Credit Report after a Short Sale
In most cases Safe Short Sales will have the mortgage companies report a short sale as a Credit satisfied lien, Paid or settled for less than what was owed or negotiated settlement. Both of these will have minimal impact a persons credit score.
Salvaging your credit should always be the primary concern when making the decision between a short sale and stopping foreclosure. The savings in interest payments alone should be convincing enough for most people, not to mention your buying power in the near and distant future.
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After the Short Sale is Complete
After we complete your short sale and successfull negotiate it with the lenders we will give you 2 months legal services with Lexington Law. Lexington Law will help you repair your credit report if needed.
Lexington Law is the leading firm in credit report repair for a reason: They make the process easy and effective for their clients. Their services have proven so effective that participating Concord-level clients have seen an average of 8.7 total removals from their three credit reports by month 3, and 28.6 total removals by month 12.** (Your results may vary)