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Stop Foreclosure - How a Short Sale Affects Your Credit

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Stop Foreclosure with a Short Sale
Credit Implications of a Short Sale
CNN Money released an article today that featured the credit implications of preventing foreclosure with a short sale. Gerri Willis, Money magazine contributing writer, wrote: A short sale, in which you negotiate with the bank to sell your home for less than you owe on your mortgage, will have a dramatically negative affect on your credit. A consumer who has been through a short sale could see a drop in her credit score of up to 200 points, essentially the same decrease as if the homeowner had gone into foreclosure, says John Ulzheimer, president of consumer education for Credit.com. And like a foreclosure, the negative mark will pull down the score for seven years. That said, if you're underwater on your mortgage and you need to move, a short sale is a better option than foreclosure. Going through foreclosure will make it very difficult for you to get a loan for at least three to five years; if you've done a short sale, you may be able to qualify for a new mortgage within two years. If you are facing foreclosure, don’t give up hope yet. There are still some alternatives that can help you avoid foreclosure, including the option of a short sale. A short sale is where the bank allows the homeowner to sell their house for less than what remains on the mortgage. The homeowner is not responsible for paying the difference, and this option is much easier on your credit score than a bank auction or lieu in deed. The problem is there are too few ethical, and financially sound short sale negotiation companies out in today’s market, and too many scam artists. “Unfortunately, there are scammers who are more than happy to take advantage of someone who is in need of help. If you are upside down in your mortgage and are considering a short sale, do a bit of research before settling on a representative. This will save you from the potential of making a difficult situation disastrous.” says a representative from www.sellhomeowner.com, a short sale specialist company that helps stop foreclosure in Portland, Oregon. To help you identify the qualifications of your seller, here are 4 things that you must look for in your short-sale partner. • The company does not charge fees. The only companies that charge fees to the seller are scam artists who want to take your money and run. These companies ask for a fee, because they want a “guarantee” that they will make a money off of your account, regardless of whether or not your home sells. True short sale companies will not charge you a fee for your business, and instead work off of a commission structure based on their sales. This means that they do not get paid unless they obtain a successful short sale of your home. • Look for a company that pays its employees with a percentage of your sale. This means that the employees are going to work as hard as possible to get you the best price. How long have you been working with short sales or foreclosure prevention? If the answer is a short time, this can indicate someone who has recently joined this market in order to make a quick profit. • Make sure the company has licensed and bonded mortgage brokers on staff. If a company does not have licensed professionals on their staff waiting to help you, then you are most likely involved with a scam. Remember, if you want to get the best possible price for your home, you need to work with someone who has proven experience and strong relationships with lenders.

Stop Foreclosure with a Short Sale

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• Check to confirm that lawyers, not simply sales professionals, review all contracts. Lawyers’ are the only qualified party to review these complex contracts, and they can prevent you from making several critical errors. Lastly, remember, if you are stuck in a house you can’t afford, there are thousands of people just like you. Don’t let shame or embarrassment keep you from taking steps to prevent foreclosure. Find a solid company to represent you and move forward. All of the guidelines above were provided by SellHomeOwner. For additional more information on short sales or preventing foreclosure, visit http://www.sellhomeowner.com.

Stop Foreclosure with a Short Sale

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DOCUMENT INFO
Description: CNN Money released an article today that featured the credit implications of preventing foreclosure with a short sale. Gerri Willis, Money magazine contributing writer, wrote: