Short Sale

Short Sale Expert Advice, Short Sale Agent, Short Sale Negotiation

One of the options available to Home Owner who want to Avoid Foreclosure is a  Short Sale.  We briefly cove the other 3 options before examining the impact of the Short Sale on the sellers credit score.   

1) Loan Modification:  Loan modification is an option that some lender modify the terms of the existing loan to help home owners afford the monthly payment.  

2) Deed in Lieu:  Deed in Lieu is an option for owners who agree to transfer the title of the property to the lender instead of a lengthy foreclosure process.    

3) Bankruptcy:  This option provides the home own to use the courts to settle with their creditors and the lender on their home.  . 

4) Foreclosure:  One final alternative to Short Sale is Foreclosure where the lenders use either the courts in Judicial States or the Trustee Sale (Trustee States like California) to remove the property from the possession of the home owner and sell it at Auction.

According to our Lending Expert Robert Heath of BayView Residential, the owner’s credit score could drop anywhere from 110-160 points depending on how the loan status is reported to the Credit Agencies.  But these are only estimates since every borrowers credit history is unique to that individual and depending how the deficiency judgement is reported to the credit agencies the impact on their credit score will be different. 

However, home owners should contact the Dept of Housing and Urban Development (HUD) to explore all their options using a HUD Counselor who will advise them of all of their including a Short Sale and the 4 above mentioned options.   

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