Long Beach Homes for Sale Present: Short Sale Tips
Short Sales Stop Foreclosures: Why we should avoid Foreclosures
Sometimes things don't go as we hoped they would. But this doesn't mean that we have to give in and lose even more than our property. It is important to know your options when quick decisions have to be made. If funds fall short and you are no longer able to make payments for your piece of real estate in a timely fashion it is vital that you try and keep a good face by making smart decisions. If you need to sell your home in order to stay afloat, choosing to do a short sale instead of foreclosure is the right move. Lifestyles of Long Beach and Ricardo the Realtor have some advice in regards to the advantages of doing a short sale vs. foreclosing your home.Know Your Terms:
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| Foreclosure is a forced sale of an asset |
Foreclosure is when a lender legally forces the sale of the asset used as collateral for a loan to attempt to recover the balance of a loan from a borrower who has stopped making payments.
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| Short Sale can help you avoid foreclosure |
A Short Sale is an arrangement between the current owner of a home and the current mortgage lender holding the mortgage to sell the real estate and accept an offer for less than the total amount owed to pay off the home loan. The lendee must encourage the lender to agree to this. Therefore, you must pursue this options a soon as you start falling behind in your payments.
Credit Score:
A foreclosure can affect your credit score from 250 to over 300 points. The affect will last for over 3 years and will remain on your credit history for 10 years. If you provide payments on time and regularly, a short sale will not affect your credit score. A short sale will not be shown on your credit report and when the transaction is complete, the loan will be shown as paid in full providing a positive score. Ricardo the Realtor advises to keep your Credit score looking good for when you plan on buying a home in the future. |
| Employment options will be effected by Foreclosure |
Employment:
When deciding whether to foreclose or do a short sale, it is important to factor in how this might affect your employment. Believe it or not, bad credit can effect whether or not you can get and keep the job of your dreams. Many sensitive positions or those with security clearances do regular credit checks on their employees. An individual having bad credit is enough grounds for immediate termination. Furthermore, most employees check credit reports when hiring on new employees. Becoming less employable will definitely make a hard time worse. Foreclosures will be placed as a black mark on your credit report significantly effecting your score. On the other hand, short sales are not put on your credit report, therefore they have no negative effect on your credit score or your employment options.
