Most things in Phoenix, Arizona today revolve around credit. Just ask a person that has poor credit or no credit at all. Poor credit or no credit can keep you from buying a car, renting an apartment or even getting a job. If you are a home owner facing the loss of your home, a mortgage short sale can save your credit. A mortgage short sale should be the first thing you consider in lieu of bankruptcy or foreclosure of your home.
The mortgage short sale process in Phoenix, AZ is probably something that you have never heard of or know little about. Although the process has been around for years, it has not been widely used until recently with the collapse of the banking industry and the housing market. The mortgage short sale can help home owners get out of their mortgage liability and retail relatively good credit.
Home owners who have a mortgage that is greater than their home’s current value can qualify for a mortgage short sale. There are very few prerequisite that need to be met to utilize a mortgage short sale. First, you must be late on your payments. It also helps if you have little to no savings, because you will be asking your lender to take a loss on the loan.
In most cases, the owner will have the balance of the home “forgiven” as soon as the home is sold in a mortgage short sale. In order to apply for a mortgage short sale, you must contact your bank and you should also contact a mortgage short sale specialist to help you through the process. Your lender will request some documentation and information so you can be approved.
It is highly recommended that you find a real estate expert with experience dealing in mortgage short sale procedures. Lenders are more likely to deal with a person like this than with the home owner. And, obviously, the real estate expert can expedite the sale of your home.
When it comes to a mortgage short sale, your credit score will not be tarnished as much as if your home went into foreclosure. When your mortgage short sale is complete, your credit report will say "pre-foreclosure in redemption" and may reduce your FICO score by around 100 points.
With a foreclosure, your credit report will have a higher giant impact of at least a 300 point reduction on your score. This fact alone should be sufficient reason to execute a mortgage short sale.
Because of this impact on your credit score, you can resume your life without the burden of poor credit in as little as two years. The result of a foreclosure will take you at least ten years to rebuild your name and credit score. Without a respectable credit score, your only option in maneuvering around this world is to pay cash for everything.
Do you have questions? Read the Short sale FAQs.
Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePowerhour.com
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