EVERYTHING you need to know about Short Sales
What is a Short Sale? In the world of Real Estate, a short sale refers to the sale of real property for an amount less than the amount owed on the property. In the short sale scenario, the bank agrees to accept less than the full balance due on the debt, and usually ‘forgives’ all or a large portion of the difference. How will the Short Sale affect my credit? Banks have the option of submitting the short sale to the credit bureau as "Paid in Full" or "Settled for less than full balance". If you are currently behind on your mortgage or facing foreclosure, the short sale can actually help your credit! How? Because once you are approved for the short sale, all collection activity will STOP and you will avoid foreclosure! Then, once your property closes, your current mortgage balance will be removed from your credit file and replaced with a zero balance, which also helps your overall debt ratio. Who benefits from the Short Sale? Short sales are a win-win situation. Le...