Post Short Sale Planning: Your Credit Situation Is Not Hopeless!
If you are pursuing a short sale or are currently in one, your credit has been or will be affected. Keep in mind that a foreclosure and a short sale will both have the same amount of damage to your credit score. However, know that you do not need to be late on your payments in order to do a short sale which will significantly decrease the ding on your score. For more information on this, please read my previous article on when do I short sale?
Having damaged credit will have an effect on your financial future as it is important for various reasons, especially if you plan on purchasing another home. Regardless where you are in your short sale (pursuing, executing, or closed), it is important that you rebuild your credit status as soon as possible.
Why is having a good credit score important?
My personal belief on credit is parallel with Dave Ramsey’s notion that borrowing money is not a good practice. However, there may be situations where you may need to borrow money such as emergencies (cushion) and purchasing a vehicle (and insurance) or a house. As you may already know, the better your credit status is, the better your rates will be. The basic question you need to keep in mind is, will I ever need to borrow money for any reason? Living in America, the answer is probably yes.
How much will my credit score be affected in a short sale, foreclosure or bankruptcy?
It depends on what your credit score is before you do any of the above. Here is the breakdown for the ding you will or have incurred.
Let me reiterate that you can short sell without having late payments which will significantly decrease the damage on your credit.
How do I begin repairing my credit situation?
Seattleshortsaleblog has been recommending Lexington Law’s credit repair company for some time now to homeowner’s whose credit has been damaged for various reasons such as a short sale. The firm has been extremely successful in helping people all across America. In 2009, they hit over a million in removing negative credit items, which was a monumental feat. for the company. In 2010, 1,297,226 negative items were removed from credit reports. In 2011 (quite honestly even to my surprise), they proudly stand on 2,548,948 items removed!
I believe their services would be highly beneficial to anyone who has had their credit affected due to the down economy but if you have done or are going to do a short sale, it is a no brainer to get on the credit repair program and plan your future. You can get a free consultation with our partnered attorneys through this number: 888-586-6113 or click the credit repair tab here.
Hope this helps