United Credit Education Services and TJT Financial Services Providing credit solutions that work!
Hello, my name is Tim J Thrift Certified Credit Consultant and Qualified Field Trainer of United Credit Education Services.
Recently, the market has seen a lot of foreclosures on homes. In 2007, there were over 2 million foreclosure filings, a rise of nearly 75 percent from the previous year. However, a new phenomenon of short sales has brought new questions of how this will affect consumer’s credit and credit scores.
Short sales happen when there is not enough equity to sell and pay all costs of the sale and a lender agrees to accept less than the amount owed against the home. Not all lenders are willing to do this though. Typically lenders only consider a short sale agreement when the home owner has defaulted on their payments.
A short sale may seem like the answer to avoid foreclosure, however, be aware that a short sale will still result in a lower credit score. The seller in a short sale will have lowered credit score 80 to 100 points versus a foreclosure, which will drop a consumer’s credit score 250 to 280 points. A short sale also can be more favorable than a foreclosure in that sellers of a short sale will be eligible for good interest rates in about 18 months to buy another home versus 36 months in a foreclosure. Talk to a real estate agent or a lawyer when determining whether a short sale or foreclosure is in your best interest.
Contact me today for a FREE debt and credit consultation at 248-830-4832 or visit my website http://www.tjtfinancialservices.com/ e-mail: tim@tjtfinancialservices.com
Hello, my name is Tim J Thrift Certified Credit Consultant and Qualified Field Trainer of United Credit Education Services.
Recently, the market has seen a lot of foreclosures on homes. In 2007, there were over 2 million foreclosure filings, a rise of nearly 75 percent from the previous year. However, a new phenomenon of short sales has brought new questions of how this will affect consumer’s credit and credit scores.
Short sales happen when there is not enough equity to sell and pay all costs of the sale and a lender agrees to accept less than the amount owed against the home. Not all lenders are willing to do this though. Typically lenders only consider a short sale agreement when the home owner has defaulted on their payments.
A short sale may seem like the answer to avoid foreclosure, however, be aware that a short sale will still result in a lower credit score. The seller in a short sale will have lowered credit score 80 to 100 points versus a foreclosure, which will drop a consumer’s credit score 250 to 280 points. A short sale also can be more favorable than a foreclosure in that sellers of a short sale will be eligible for good interest rates in about 18 months to buy another home versus 36 months in a foreclosure. Talk to a real estate agent or a lawyer when determining whether a short sale or foreclosure is in your best interest.
Contact me today for a FREE debt and credit consultation at 248-830-4832 or visit my website http://www.tjtfinancialservices.com/ e-mail: tim@tjtfinancialservices.com
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