• How Will A Short Sale Affect Your Credit?

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    How Will A Short Sale affect Your Credit?

    I’ve gotten this question more time than I can remember. “How will a short sale will affect my credit?”

     

    A short sale can have a lot less of an effect on your credit score than a foreclosure. But, it must be done correctly.

     

    Short sales can happen if a lender agrees to accept less than the amount owed against the home because there is not enough equity in it to pay all costs of the sale.

     

    It’s important to note that not all lenders will agree to a short sale.

     

    If your request is approved, your agent should ask your lender to report the short sale as “paid in full,” as part of the negotiation.

     

    There’s been reports that a short sale has about the same impact on your credit score as a foreclosure. However, from experience with our own clients, that’s never been the case.

     

    Most of the time, sellers that have completed a short sale report that their credit score only dropped by 100 points or so, which can be easily fixed by any decent credit repair company.

     

    The biggest advantage of a short sale as opposed to a foreclosure is that you will be able to qualify to buy another home within two years as opposed to five to seven years after a foreclosure.

     

    I hope this video was helpful, If you still have questions, feel free to contact us at 407-902-7750 or visit us at https://orlandorealtyconsultants.com/short-sales/