Homeowners & # 39; credit scores less than foreclosures do, these transactions are a matter of public record and have some impact on the homeowners & # 39; credit history. Exactly how much damage does to homeowners & # 39; credit scores depends on a number of factors. One of the most important factors is who handles the transaction. Savvy real estate agencies and foreclosure companies are often able to reduce the damage done to their clients & # 39; credit scores. Individual homeowners and real estate agents inexperienced in foreclosure transactions tend to fare much more poorly.
Length of Mortgage Payment Default
Each missed mortgage payment adds a black mark to the homeowner's credit history, and the longer the sale transaction drags on, the more missed mortgage payments will be made on the homeowners & # 39; s credit. Sales which are completed swiftly tend to inflict less damage on homeowner credit. This is all the more reason to find a professional foreclosure agent.
Forgiveness of Deficiency
Whether or not the mortgage lenders chooses to forgive the homeowner the "deficiency", or remaining balance on the original loan, much impact the sale. Lending companies may be responsible for the deficiency, sometimes to the point of suing the owner. This can not be a great damage to homeowner credit.
Foreclosure transactions which are expertly conducted, however, will take precautions against the lender pursuing the homeowner for the remaining balance. Savvy real estate companies and typically include protection from "deficiency judgment" lawsuits within the short sale negotiation.
How Does a Short Sale Affect My Credit History?
Short sales, like foreclosures, remain on the homeowner & # 39; s credit history for seven years. The impact this has on credit score, however, can vary greatly, depending on the factors mentioned above. Sales which are guided swiftly and without deficiency could result in seeing good credit restored within 2-5 years. In less fortunate cases, good credit restoration may take as long as seven years.
Finding a Short Sale Expert
Having your Michigan home's sale will have an impact on your credit score. When looking for a foreclosure company, be sure to research the company's track record and references. Home foreclosure agencies like Sun Law Group have a proven record of completing foreclosure sales quickly and expertly, providing homeowners with the best possible outcome.
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Source by Marjorie Steele