How does a short sale affect my credit?

May 31, 2011

Fair Isaac released a report that stated credit scores are affected about the same when considering a short sale or foreclosure. What most consumers do not understand is that when you consider a short sale or foreclosure it is the late payments that mainly affect their credit score.  Fair Issac further stated the average points lost to a consumers FICO score were as follows:
•30 days late: 40 to 110 points
•90 days late: 70 to 135 points
•Foreclosure, short sale or deed-in-lieu: 85 to 160
•Bankruptcy: 130 to 240
While there are no immediate advantages to your credit score in choosing to do a short sale, the advantage of doing a short sale versus a foreclosure comes into play when you consider the amount of time it takes to become eligible for a home loan again. With a short sale on a homeowner’s credit it only takes 24 months to be able to qualify for a home loan and with a foreclosure it takes seven years.

How much does a short sale cost?

May 13, 2011

A short sale costs absolutely nothing out of pocket for homeowners. There are no start up fees or fees due upon completion of a short sale. Your realtor is paid their commission from the proceeds of the sale. The fees requested to be paid for by the “seller” on a buyer’s offer is submitted to your lender as fees to be deducted from their net.

What is a Short Sale ?

May 10, 2011

A short sale is a transaction in real estate where the sale proceeds are less than the balance owed on the seller’s loan. This is typically a result of a property’s value decreasing to the point where it can no longer be sold at or above the amount owed on the owner’s loan. Both sellers and lenders consent to the short sale process because it avoids the foreclosure process which involves substantial fees for the lender and longer credit consequences for sellers.

2011 Foreclosure mess… Worst year yet?

Jan 19, 2011

Due to the dramatic decrease in property values over the last three years millions of Americans have found themselves in an increasingly hopeless situation. The American dream of one’s home being the most lucrative investment seems long gone. Many homeowner‘s find themselves wondering which course of action is the quickest road to financial recovery. As a responsible adult which is the best financial decision for your family?? Should you consider letting your home go risking your credit history of faithfully making all your payments on time, will you qualify for a loan modification, or would it be best to continue making payments even though your home is underwater and hope for the best ? [ read more ]

7 ways to improve your credit

Oct 8, 2010

What You Can Do to Improve Your Credit

Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management. This means running your own credit often to see what’s new and what’s not supposed to be on your report…. [ read more ]