Don't be fooled, you are judged on your credit report and score. Your credit is a heavily weighed factor when buying a car, renting a home, getting a
job, applying for a loan, determining the cost of insurance and much
more. Sadly, most people don't realize the importance of their credit
until after foreclosure.
Foreclosure is one of, if not the biggest bombshell on your score. Alex Charfen, CEO of the Distressed Property Institute states "I have
personally seen a short sale only lower credit scores by as little as 50
points, as opposed to the 250 to 300 point drop from a foreclosure.
Additionally, the credit effects of a short sale can be as brief as 12 to 18 months, whereas a foreclosure will typically impact your credit score for more then three years".
Many lenders are open to a short sale to avoid a foreclosure even when the borrowers are still current. Often homeowners ignore the
early warning signs of foreclosure until they are in deep default.
Acting before missing your first payment truly mitigates the devastating
damage of foreclosure on your credit.
[Whether the bank forecloses on your house or you walk away, the impact is the same, says Craig Watts, senior national public
relations manager with FICO, the creator of the FICO credit score. "A
person's credit report doesn't include information about assets, income
or the ability to pay," he says. So a person or scoring formula that
sees ‘foreclosure' on the credit report doesn't know why the borrower
stopped paying, only that she or he did."] Amy E. Buttell, Cyberhomes
Contributor Published: January 21, 2010 reported
Another important tip to know is that presently a short sale is not specifically reported on a credit report. A foreclosure is reported for
at least 10 years, so those looking for employment, seeking a security
license or working in the finance field may find road blocks toward a
better future when your credit report comes back to haunt you. There is
a big difference between Short Sale vs a Foreclosure.
Mike Sher of Max Broock Realtors Bloomfield Hills is offering free foreclosure avoidance with Short Sales seminars at 6pm on , 8/17/10, 8/23/10 9/14/10 and 9/28/10 Call him at 248-644-4700 x242, email: [email protected]. Also learn more at www.ShortSaleOaklandCounty.com
Mike Sher
The Mike Realtor Team sells Homes in Bloomfield, Birmingham, Beverly Hills, Farmington, West Bloomfield. Rochester, Troy, Novi, Huntington
Woods, Royal Oak & Auburn Hills. Call us at (248) 644-4700 X 242 or
check us out at www.ShortSaleOaklandCounty.com or www.mikerealtor.com Mike Sher
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