How Will A Short Sale Affect Your Ability To Buy Another House In The Future?

The Short Sale and Your CreditOne of the most immediate consequences of a short sale is its impact on your credit score. When you sell your home for less than the amount owed on your mortgage, the lender reports the debt as "settled" or "paid less than the full amount," which can significantly lower your credit score. A lower credit score can make it challenging to obtain new credit, including a mortgage for a future home purchase. Lenders rely on your credit score to assess your creditworthiness, and a low score may lead to higher interest rates, larger down payments,…
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3 Critical Tips for Buying a Home in a Short Sale

You just found your perfect home, and you feel like everything is right including the price. But, what could be wrong with your ideal home? Maybe, it is being sold as a short sale, and that could present a major challenge if you want to become be the eventual homeowner. Short sales are different from other conventional real estate transactions since the property in question is usually listed at a price that is much lower than the amount of the outstanding mortgage debt. Unlike a regular sale, the homeowner must obtain permission from the lender before proceeding with the transaction.…
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What Is A Short Sale?

Nobody enters into a mortgage assuming they are going to fall short on their payments; however, life happens and borrowers might need a way out. In serious situations, lenders may elect to foreclose on homeowners who are unable to make their mortgage payments. Fortunately, there might be another way out. This is called a short sale. A short sale can be used to help homeowners who are struggling cater to those who are looking to buy a home. At the same time, there are risks to both parties. Therefore, there are a few important points to keep in mind. What…
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