Asked in Law & Legal IssuesCredit ReportsForeclosureCredit
Law & Legal Issues
Credit Reports
Foreclosure
Credit
Does a short sale hurt your credit?
We need you to answer this question!
If you know the answer to this question, please register to join our limited beta program and start the conversation right now!
Related Questions
Asked in Mortgages, Home Equity and Refinancing, Foreclosure
Is it better to short sale a house or refinance to get credit in good standing?

It's better to refinance. A short sale will reflect negatively
on your credit record.
It's better to refinance. A short sale will reflect negatively on
your credit record.
It's better to refinance. A short sale will reflect negatively on
your credit record.
It's better to refinance. A short sale will reflect negatively on
your credit record.
Asked in Real Estate
Does a short sale affect credit score?

A short sale takes place when a lender accepts less than they
are owned on a loan secured by a property in the US. In most cases
the borrower was already in default on the loan prior to the agreed
short sale. The lender will have already reported the late payments
or default and there likely was credit damage. The short sale can
be recorded as paid as agreed or various other language. A short
sale might show as a negative. Or it will show as the loan being
paid off after a number of late payments so the credit file shows
an account going bad and then no further activity on that account.
A short sale is much better than a foreclosure or bankruptcy filing
on one's credit report. Late payments are normally the only real
sign of a short sale and late payments have an impact for
approximately 12 months before a credit score starts to improve.
When dealing with your credit report check it yearly and challenge
all items that are not accurate.
Asked in Debt and Bankruptcy, Debt Collection, Foreclosure
What is better a short sale or a foreclosure?

A short sale is always better. I will tell you why very
definitively. When you purchase a home on a short sale you are
helping a homeowner salvage their credit and dignity and helping
them out of a bad situation. You are also preventing a large loss
for the bank and getting a great deal for yourself. Everyone wins
if it is done correctly. A foreclosure will have a very bad effect
on a homeowner's credit and the bank will in most cases take a
bigger loss than they would in a short sale. A sellers credit in a
short sale will be damaged to a lesser extent than a foreclosure.
In most circumstances if you have done a short sale you will not be
able to get another loan for two to three years. In a foreclosure
it is usually around five years before you can purchase another
home.
Asked in Credit Reports, Debt Collection, Foreclosure
How long does a short sale affect your credit?

Iam bout to lose my house soon, getting divorce!. is it
recommended to do a short sale? I am concerned about 1099-C taxes I
have to pay to IRS and how bad my credit will be if I want to get a
cheaper property later on. does enybody know how much afeccts short
sales, is it better than a foreclosure!
Thanks
Asked in Debt and Bankruptcy, Debt Collection, Foreclosure
Foreclosure vs short sale?

Ultimately the impact of a foreclosure to your credit rating and
ability to borrow in the future is reason to choose the short sale
over the foreclosure. Lenders will look more favorably upon a
potential borrower that tried to work with the bank (via short
sale) opposed to one who just walked away.
The short sale process, when handled properly, can even result
in a favorable narrative on your credit report, which will minimize
the impact to your score. When looking for a short sale specialist,
I suggest you make sure that agent has a trained mitigator that
will negotiate with the bank on your behalf. Also, the agent you
choose should have experience in the short sale market.
Hope this helps! If you need more information or have other
questions, just ask.
Asked in Investing and Financial Markets, Debt Collection, Foreclosure, Real Estate
What is a short sale?

A short sale is a sale of real estate in which the sale proceeds
fall short of the balance owed on the property's loan. It often
occurs when a borrower cannot pay the mortgage loan on their
property, but the lender decides that selling the property at a
moderate loss is better than pressing the borrower. Both parties
consent to the short sale process, because it allows them to avoid
foreclosure, which involves hefty fees for the bank and poorer
credit report outcomes for the borrowers.
Asked in Mortgages, Home Equity and Refinancing, Foreclosure
Can you short sale your house to your spouse?

A short sale must be approved by the lender. It will not approve
your proposal.
A short sale must be approved by the lender. It will not approve
your proposal.
A short sale must be approved by the lender. It will not approve
your proposal.
A short sale must be approved by the lender. It will not approve
your proposal.
Asked in Foreclosure
Is a short sale a bad idea?

its can be good and also it can be bad.
Good: you get rid of the house, it will hurt your credit for few
year, you get start fresh again.
Bad:
1. it depend on the lender and your agreement with the bank that
no deficiency judgement if the bank accept short sale. so there
could be deficiency judgment.
2. there will be 1099-C mail to you. You may have to pay tax on
it as ordinary income. for example: loan amount is $100,000. the
bank approve the short sale for $70,000. then they will mail you
1099-C, then you have liable for the amount.
But there is a better solution for that at
www.wesavehouse.com