26 January 2011 ~ 0 Comments

Short Sale Or Foreclosure: Which Is The Better Options For Protecting Your Credit?

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Home Page > Finance > Real Estate > Short Sale Or Foreclosure: Which Is The Better Options For Protecting Your Credit?

Short Sale Or Foreclosure: Which Is The Better Options For Protecting Your Credit?

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Posted: Jan 11, 2008 |Comments: 0
| Views: 116 |



Homeowners that are facing a foreclosure have a number of options available to stop the foreclosure process. One of the options available on is a “short sale”; this is where the lender will allow you to sell the home for less then what the current amount owed is. Many homeowners simply let their home go into foreclosure because they are not sure about the options, or just give up. Before giving up and letting your home go into foreclosure keep in mind that you do have options, and depending on which one you choose, there are a number of pros and cons for each.


Short sales can help lenders avoid the costly and sometimes lengthy process of a foreclosure. One of the key benefits to a short sales is the long term affect on your credit score, a foreclosure is much worse then a short sale with regards to your credit score and ability to recover from your hardship quickly.


Short sales are a simple concept; lenders agree to allow you to sell your home for less then what the current mortgage is on the property. Many lenders will accept a short sale and relief you of the balance of the mortgage, this is good news for homeowners facing foreclosure. Most states allow the lender to attempt to collect the shortfall after a foreclosure is processed; a short sale may relieve you of this additional burden.


Bear in mind that not all lenders will agree to short sales, if the circumstances are right, some lenders will not do short sales at all. If you are current on your mortgage payments, you have very little chance to have a short sale approved. In most cases, you will need to be several payments in the rears in order to have a lender consider a short sale.


Foreclosures will have a greater impact on your credit score. You can typically expect your credit score to sink at least 200-300 points. The long-term affect of a foreclosure on your credit may hinder your ability to make purchases with credit for up to 10 years. Lenders may not offer competitive rates on a new mortgage loan for three to five years, after a foreclosure.


Doing a short sell will have far less repercussions on your credit report; generally your score will fall between 75-100 points. With a short sale, lenders will typically offer reasonable interest rates on a new mortgage after about 18 months.


During a foreclosure you credit should be your primary concern. Repairing bad credit and getting back on your feet is much easier if with choices that offer the least amount of impact on your credit score. The savings on interest alone with credit cards, auto loan and mortgage loans in the future should be enough to convince you, if not think about the strength of your buying power in the future.

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Thomas Bladecki -
About the Author:

Thomas Bladecki is the author and can provide additional information about foreclosure listings and the current real estate markets visit Home Foreclosure Help. You should also see his Foreclosure Blog for all the latest information about the real estate foreclosure market.

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I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me
What are tax implications of short sale ?
What are the repercussions of a short sale ?

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Source:  http://www.articlesbase.com/real-estate-articles/short-sale-or-foreclosure-which-is-the-better-options-for-protecting-your-credit-301628.html

Article Tags:
short sales, short sale, foreclosure, save credit, intrest, mortage

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Knowing that it is one of the well-known cities in Texas, Abilene homes for sale and Abilene real estate listings are one of the most-frequented by many home seekers. Now, before you begin learning about anything related to this place, isn’t it proper that you become aware of its history first? This article will try to provide you a brief narration about the roots of Abilene, Texas.

By:
Margaret J Lukel

Finance>
Real Estatel
Jan 26, 2011

Uncover the Three Important Techniques that Can Help You Realize Your Dream to Buy Manalapan Homes for Sale With Bad Credit History!

If you think that it would be useful to look into Manalapan homes for sale and Manalapan real estate listings online because you cannot buy them anyway for the simple reason that you have a bad credit history, you are wrong! There are still valuable ways that can help you proceed with buying your home in Manalapan, New Jersey though you have a history of bad credit:

By:
Jacob Beltingl

Finance>
Real Estatel
Jan 26, 2011

Chief Concerns You Need to Point Up With Your Agent During La Jolla Homes for Sale Search

There are some important things that you need to talk about with your real estate agent before you start searching for quality La Jolla MLS. If you are planning to buy a home from the plenty of La Jolla homes for sale that are not only beautiful but also of good quality in the truest sense, it would be ideal that you become aware of these concerns.

By:
Joseph Huberl

Finance>
Real Estatel
Jan 26, 2011

Chennai real estate for buy and sale property

Now a day most of peoples are waiting for right choose to buy and sale homes, lands with comparable rate. It is normal thought of every human. But it will full fill by real estate business only. One of the main focus of real-estate business is customer satisfaction, Once customer buy or sale the property through real estate with full satisfaction means, real estate business will grow automatically with customer support.

By:
mobilereflexl

Finance>
Real Estatel
Jan 26, 2011

Las Vegas Foreclosure: On The Rise And Ripe With Opportunity

Las Vegas foreclosures are on the rise and currently are leading the nation in foreclosed properties. While foreclosures are on the rise with no sign of slowing down this presents great opportunities for new investors, or people that are looking for a fresh start.

By:
Thomas Bladeckil

Finance>
Real Estatel
Feb 06, 2008

Article Writing – Increase Traffic and Drive Up Your Sales

Article writing will increase traffic and make you more money. Sales or ads are the basis of just about any website, increasing sales or page views for ads, is what article writing is all about, for most people anyway.

By:
Thomas Bladeckil

Writing>
Article Marketingl
Jan 30, 2008

Stop Foreclosure: A Creative Way To Stop Foreclosure

Homeowners looking at foreclosure have options available. There are creative ways to stop foreclosure if you have exhausted others, and it seems hopeless.

By:
Thomas Bladeckil

Finance>
Real Estatel
Jan 30, 2008

Home Foreclosure Help Is Available To Those Facing Foreclosure

There are many options available to homeowners that are facing a foreclosure. Home foreclosure help web sites offer valuable information about how to prevent foreclosure and options that you may have available to stop foreclosure of your home.

By:
Thomas Bladeckil

Finance>
Real Estatel
Jan 29, 2008

Foreclosure Investing – The Pros And Cons Of Investing In Foreclosures

Investing in home foreclosures can be very lucrative; however, there is substantial risk involved, just as in any type of investing. Look at some of the pros and cons of three different types of foreclosures.

By:
Thomas Bladeckil

Finance>
Real Estatel
Jan 29, 2008
lViews: 267

Deficiency Judgment After Foreclosure? Is It Likely The Lender Will Sue You

Depending on the foreclosure laws in your state lenders may have the right to sue you for a foreclosure deficiency. Will a lender sue you for a foreclosure deficiency? A concern for many that are facing a foreclosure, but is it likely that the lender will sue you?

By:
Thomas Bladeckil

Finance>
Real Estatel
Jan 21, 2008
lViews: 5,134

How you Can Use a Mortgage Loan Modification Prevent Foreclosure

Modification of the original loan terms may help you to prevent foreclosure. Most people do not know that this is even possible, while not all lenders allow them it may help prevent foreclosure and save your home.

By:
Thomas Bladeckil
Financel
Jan 19, 2008

Loan Modification: An Alternative To Avoid Foreclosure

Loan modifications may be your salvation to a home foreclosure. Loan modifications allow borrowers the chance to reduce their monthly payments and allow them an opportunity to get caught up on their mortgage after a financial hardship.

By:
Thomas Bladeckil

Finance>
Real Estatel
Jan 17, 2008
lViews: 135

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