Thought I would pass along this concise info on the continuing saga of the “Short Sale,” brought to you by Axiom Financial. “Short Sale” sounds so much nicer than “Foreclosure” but is it? A short sale is when the lender, investor and/or mortgage insurer approves the sale of a property to a new buyer for less than the original amount of the mortgage loan. The myth is that a short sale is better for your credit than a foreclosure and is not the case. A short sale carries the same 200-300 point hit to your credit score as a foreclosure and will remain on your credit report for seven years.

But there is hope!  Rebuilding your credit will be critical in purchasing a home in the future after the specified waiting period. The waiting period varies and begins the day the title of the home is transferred back to the lender or new buyer depending on the type of financing – FHA is 3 years, VA and Conventional are 2 years.  It can be a long grueling process, so make sure to get a mortgage professional involved early on in the process.

Tags: Add new tag, Credit Recovery Short Sales, short sales in Ogden, short sales in Utah

Posted on Thursday, October 15th, 2009 at 1:53 pm and is filed under Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.