Home Sale Relief

I love reading the Loanshak blog and a few days ago, there was a post about foreclosure versus doing a short sale.

One of the big concerns that plagues those who are worried about foreclosure is the hit they might take to their credit score. So, even though one may have to give up the home, it can be done without getting that “foreclosure” on your credit report. And one way to do this is through a short sale.

Yes, this is a very good point. You do not want foreclosure on your credit report. I just wrote about what actually goes on the credit report and into your credit score in my post on foreclosure and your credit score Foreclosure deed in lieu credit reports: What can you do NOW?If you are in a situation where your ARM is resetting and you cannot get your lender to agree to a loan modification, then you may have no choice but lose your house in foreclosure. But you are better off doing a short sale if you can. This solves your problem and it solves the lender’s problem. They don’t end up with yet another house in their inventory, and you have the chance to negotiate the credit reporting with your mortgage company.

(And I highly suggest that you take my 20 minute free course on how to stop foreclosure, lower your credit card bills without bankruptcy, improve your credit and even buy another home with little or no money down without bank qualifying. Just visit www.HomeSaleRelief.com.)

A short sale means that you sell your home, even if you still have a little left over to pay, rather than going through foreclosure, and your credit remains better intact.

If you negotiate the short sale properly, this is true. But many people do not put enough emphasis on negotiating the credit reporting when they negotiate the short sale with their mortgage company. The homeowner in foreclosure is so psychologically traumataized and so grateful to get rid of their house that they don’t realize how strong their position really is. They are in a strong position to insist on better credit reporting than “foreclosure” if they do a short sale with their mortgage company.