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Whether you are dealing or have dealt with a short sale, foreclosure, BK, delinquency on your mortgage payments, or have a number of late payments elsewhere, your credit score is damaged and your finances are most likely in lockstep. However, recovering with bad credit will be difficult as interest rates inflate the cost of living and affect various other facets of your life and naturally you get caught in a downward spiral of poverty.

The best example of this is a home mortgage. Do not even consider pushing for another home without rebuilding your credit prior. The figures below will show you why.

The Ding Of A Delinquent Payment, Short Sale, Foreclosure, and/or Bankruptcy

Take a look at the impact of each situation on your FICO score. As you can see, regardless which consumer type you are, you will have incurred a significant ding on your credit score.

Can You Obtain Credit?

There are great deals out there on the housing market but a big problem these days is the inability for homeowners to obtain credit to finance their home. Large agency investors such as Fannie Mae changed their minimum credit score requirement from 580 to 620. Anything under 620 is considered high risk. Your local bank may require a credit score of up to 660 or higher. The question is, even if you were able to qualify for a mortgage, should you finance with sub-par credit?

A Bad Credit Score Will Cost You!

These figures are based on rates from 9/12/11. The example below clearly shows you how much you will be affected from obtaining a mortgage without an outstanding credit score.

How Can I Quickly Rebuild My Credit Score?

Whatever situation you may be in, the longer you are stuck in a bad credit rut, the more exacerbated your financial situation may get. Here is how to prepare: If you have a low credit score and/or want to prepare your credit situation to qualify for excellent loans for your next home purchase, by the end of this article, talk to a Lexington Law credit specialist. I have personally researched and found them to be the absolute best company to work with in rebuilding credit scores. Here is a direct number provided through the short sale blog for a free consultation: 888-586-6113 or you can apply through their website.

Hope this helps!

Peter

Ahhhhhhhhh!! The joys of working and processing short sales! Some of you Super Stars may understand the motive for today's post. Others may just be on the other end of my message. I love short sales. No, I mean I truly enjoy the art and skill necessary to do this amazing job.

I love it so much that I've begun doing it for other Realtors who either don't have the time and/or skill. I do it for FREE and I truly take great pride in what I do. However, there are days when you get hit over the head and taken for a ride in this amazing business.

So I been working a short sale with Aurora for the last three months. It's a Freddie and it's been a dooooosy. We have the second with United Guaranty who then gave it over to DCS (Another story). So after calling, working, crying (JK LOL) smiling, postponing the foreclosure sale and everything else we finally got it to a negotiator only to get a call from the Realtor to say "Hey, I started calling this week and I have APPROVAL in hand".

What...!! Now it may be my own self-conscious but I just feel like this feeling of "I got it done quicker than you". Don't get me wrong, I'm for the borrower and whatever whenever to get them to avoid foreclosure. It's just that the APPROVAL is like that Holy Grail of processing the short sale. It's like running a marathon only for them to say "hey we stopped the race, come back tomorrow".

So great job for the Realtor and borrower and I'm very happy. Once again......The joys of short sales!!