Why Choose A Short Sale?

Short sales are a much better option to foreclosure and will do less harm to the borrower’s credit. A foreclosure will drop credit rating by a whooping 200 to 300 points and remain on the credit report for about 7 to 10 years. It will take about 36 months before reasonable interest rates are offered to the borrower who has a foreclosure. A short sale, may drop credit by 80 to 100 points and take about 18 months before favorable rates are seen. In addition, a foreclosure on your credit will require you to answer certain application, checking off whether you’ve ever experienced a foreclosure. The actual final determination on credit scoring is influenced by how the lender reports the short payoff to the credit reporting agencies but your credit score will be further affected by any late payments.