How Short Sales Can Help Your Credit
A “Short Sale†in Real Estate means that the person paying the mortgage can no longer keep up the payments for some reason, and needs to sell the house for less than what they owe the holder of the mortgage. If you are the homeowner stuck in this miserable situation, it is far better for you to do so, rather than simply waiting and your house being foreclosed.
You should talk to your lender. If the lender agrees to a short sale, then you can advertise your house for sale, or hire a Realtor to help you. You also need a Real Estate Attorney. Selling the house for less than you owe can help you avoid foreclosure, further, more extreme embarrassment, and in some cases, even bad credit reporting about the incident. You have to ask that the lender not make a bad report to the credit bureaus, and not all lenders who accept a short sale will refrain from reporting you to the credit bureaus.
Performing a short sale on your house in these tough times can be difficult. It may even take longer to perform a short sale, so that you have several payments to try to make, or even fall behind on, and you are foreclosed on, anyway. Credit scores are important to hiring managers. Doing nothing about your financial/housing situation will surely earn you bad credit marks. Performing a short sale gives you a much better chance of positive credit marks.
