Stop Home Foreclosure

ByOlivia L Blakely

Whenever you make a financial decision that impacts your finances, it will most likely have an effect on your credit score. In this mortgage crisis, there are endless numbers of families experiencing a “ding” on your credit due to the devastating effects of the turbulent real estate climate. This “hit” to your credit is true of a foreclosure and short sale as well. But, a short sale is likely to impact your credit as much as a foreclosure will.

In foreclosures, late payments leading up to the actual foreclosure will always have a huge affect on your score. Many individuals who ultimately foreclose on a property discover that their FICO score (the institution that calculates credit scores) drops somewhere in the neighborhood of 175-300 points! That’s a huge drop, and might have a long lasting negative impact on your future home buying prospects. Additionally, the average foreclosure shows up on your credit report for ten years. This may change in the future, considering the unstable mortgage environment has affected many otherwise creditworthy families, and it is possible that borrowing regulations may change for people who filed for a foreclosure in this mortgage disaster.

What can you do if foreclosure seems like the only option? There are alternatives that can help you attain a similar end result that could have preferable financial outcomes for you. The “foreclosure avoidance” option known as a short sale might be the perfect alternative for you.

So, can a short sale be superior for your economic fitness than a foreclosure? Well, if you work with a foreclosure avoidance attorney, a preferred real estate agent, and your mortgage lender, you may be able to negotiate a short sale without missing any mortgage payments. Staying current on your payments helps keep your credit score at a higher rate than missing payments. While winding down the negotiation process, you should ask your foreclosure avoidance lawyer and real estate professional to work with your mortgage company and ask them the report the sale as “paid in full” on your credit report.

Do not these circumstances fool you. A short sale alone is not a guarantee that your credit will not be affected. That particular feat is complicated at best, however, your chances of affecting You may even be someone a lender decides does not qualify for a short sale. This leaves you in another difficult position. Do you try to keep your home and see if you might meet the requirements for a loan modification program? Or do you let your house go to foreclosure. Whatever you decide, if you are thinking about letting your house go to foreclosure, you may decide to explore the option of a short sale, because it might have less of an effect on your credit.

Olivia Blakely is a freelance writer specializing in legal special interest articles for Las Vegas Short Sale Attorneys and Las Vegas Traffic Citation Attorneys.

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