Hello everyone Toni Patillo here with Toni Patillo and Associates thank you for your time today. I use this blog to keep Southern California homeowners up to date and informed on the solutions to their current real estate problems. If you can no longer afford your mortgage payments and your mortgage is underwater there may be options for you to get out from under your mortgage debt and move on with your life.
In my blog today I wanted to talk with homeowners that decide to complete a short sale about the whether your credit will be damaged. This is a very common question I hear from homeowners and it is one of the many important things to consider before selling your home. The truth of the matter is that missing your monthly mortgage payment will have the most impact on your credit score. And given that most homeowners who complete a short sale miss several mortgage payments it is a common association. Currently there are lenders who will allow a homeowner who is still current on their payments to complete a short sale simply for having an underwater mortgage. Those who are fortunate to do this will see very minimal damage to their credit score. Of course the biggest concern surrounding your credit score as a homeowner is the ability to qualify for a mortgage in the future. Homeowners that have seen a hit to their credit score of 100-150 points will likely have to wait a year or two to qualify for another mortgage. While this is not ideal it is much better than entering in to foreclosure and having to wait nearly seven years.
In the big picture it is important to see the benefits of a short sale on your long term credit standing. If you have questions about your mortgage or need to sell ASAP please call the office today or contact me via my website to get started. Thanks again for your time and I look forward to helping with all of your real estate needs in the future.