What will a short sale do to my credit?
Everything can be negotiated. When you do a short sale, you are helping the lender out of a problem. Their problem is a non-performing mortgage. They would rather you sell your house and get partial payback of the mortgage than get your house back.
So they are often willing to negotiate on how your credit is reported. An Unrated is the best. Even Paid - Satisfactory is not so bad. The worst things are bankruptcies and foreclosures and you will be able to avoid this if you do a short sale.
I teach you how to make sure you keep decent credit if at all possible and how to start rebuilding. The time to do this is during the short sale process or deed in lieu and not afterwards. There is a lot you can do during the process so you don't have to lose out on your credit score. Quite the opposite — you can improve things a lot.
I did a short sale on my personal residence and had no trouble getting a new mortgage. I have known many people who have had the same result. It's what we aim for.
1 Comment on What will a short sale do to my credit? »
Joan Elliott @ 9:32 pm:
My husband had a job relocation along with a little bit of a pay cut and we have been trying to sell our house since June, we have reduced the price significantly to try and start a short sale and we still haven't had any offers…We were thinking of doing a deed in lieu but we are afraid to hurt our credit. We really can't keep paying our house payment especially since we are now paying for 2 houses, but we haven't missed a payment yet and we need to do something soon otherwise we will have to go into foreclosure. It would be great if you could help us out!