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Replies (10)
- Steve Loynd, "Steve Loynd"
- Contributions:25
Many employers require credit checks for all applicants...especially for those in sensitive material positions. A foreclosure on a credit history could be detrimental to a job search...While a Short sale is not reported on a credit history as such often it shows as "paid as agreed" or "paid as negotiated".
- Scott Berglund, "pvhomes"
- Contributions:491
A short sale actually stays on your credit longer.
- sunnyview
- Contributions:25139
Owners need to get legal advice before they agree to a short sale. Foreclosures may or may not be better depending on the laws of the state the owner resides in. Both short sale and foreclosure can be detrimental in a job search and both affect owners credit.
Short sales can be an option for underwater homeowners but they are not a perfect solution and they can affect employment as long as they remain on your credit report or searchable past.
Short sales can be an option for underwater homeowners but they are not a perfect solution and they can affect employment as long as they remain on your credit report or searchable past.
- Angela Hardy, "AngelaHardy"
- Contributions:339
While a Short sale is not reported on a credit history as such often it shows as "paid as agreed" or "paid as negotiated".
Be careful Steve- the key word in your statement is "often" - not always.
Sellers should get legal advice about thier specific situation when considering a short sale. They should not rely on the generalizations provided by an agent.
Be careful Steve- the key word in your statement is "often" - not always.
Sellers should get legal advice about thier specific situation when considering a short sale. They should not rely on the generalizations provided by an agent.
- Steve Loynd, "Steve Loynd"
- Contributions:25
I agree Angela...
The lender has the option to report a closed short sale as a paid off loan as negotiated...while a foreclosure is pretty black and white. That was my point there is more wiggle room to explain a short sale while a foreclosure is what it is.
The lender has the option to report a closed short sale as a paid off loan as negotiated...while a foreclosure is pretty black and white. That was my point there is more wiggle room to explain a short sale while a foreclosure is what it is.
- sunnyview
- Contributions:25139
There MAY be more wiggle room, but people considering short sale need to really be aware of full the affects of that decision including those to their credit. There is no guarantee that the bank will report it as "paid as negotiated" either unless that is spelled out somewhere in writing.
Owners take a chance and hope they will, but it doesn't always happen. They need to get legal and tax advice before they decide on short sale.
Owners take a chance and hope they will, but it doesn't always happen. They need to get legal and tax advice before they decide on short sale.
- Steve Loynd, "Steve Loynd"
- Contributions:25
So far, the sellers who have closed on Short sales have as a higher percentage of taking less of a hit on their credit score (reporting 100 -200 points) and have been able to borrow again in a shorter period of time on new loans than have folks that let their property go to foreclosure. I believe lenders see this as an honest effort to do the right thing. You all may say there is no absolute guarantee - but that has been my experience as a Realtor for the past 27 years. I never guarantee perfect results, but my sellers have fared better in the long run after a short sale Vs walking away from a foreclosure.
- sunnyview
- Contributions:25139
I do not disagree with you about short sale being a better option for owners than walking away. What I do disagree with is agents who fail to represent all of the potential credit risks upfront or imply that a short sale will have no effect on security clearances for employment.
Owners need to get all the information before they make the best decision that they can. No underwater owner should expect a perfect option, but it is better to consider all options, hear the pluses and minuses and then decide what option will give you the owner the best possible outcome given their situation.
Sadly, many agents do not recommend that their clients in this situation get legal advice. I think that they should. Agents can be a great help in the process of short sale, but it is a big decision that can have implications beyond the sale of the house itself and it should be treated that way.
Owners need to get all the information before they make the best decision that they can. No underwater owner should expect a perfect option, but it is better to consider all options, hear the pluses and minuses and then decide what option will give you the owner the best possible outcome given their situation.
Sadly, many agents do not recommend that their clients in this situation get legal advice. I think that they should. Agents can be a great help in the process of short sale, but it is a big decision that can have implications beyond the sale of the house itself and it should be treated that way.
- shasta_steve
- Contributions:448
.While a Short sale is not reported on a credit history as such often it shows as "paid as agreed" or "paid as negotiated".
Nice sales pitch but your forgot the second part of that. It says paid as agreed "for less than what was owed".
The only reason you agents push short sales, with misleading information at best, is because it makes you money. If foreclosures made you more money you would be telling everyone how much money they could save by waiting in their house until the bank kicked them out. This is one my biggest complaints. You always tell us you can not give legal advice but you do it all day long.
Nice sales pitch but your forgot the second part of that. It says paid as agreed "for less than what was owed".
The only reason you agents push short sales, with misleading information at best, is because it makes you money. If foreclosures made you more money you would be telling everyone how much money they could save by waiting in their house until the bank kicked them out. This is one my biggest complaints. You always tell us you can not give legal advice but you do it all day long.
- sunnyview
- Contributions:25139
I think owners actually need to get legal advice from lawyers and the agents should encourage that.
Short Sale Vs. Foreclosure sale
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- 5.0/5.0
- (2 reviews)
Contributions:25A foreclosure may be the cleanest option for the buyer, but a short sale is far better for a seller. Did you know a foreclosure can affect your employment security clearance, or future position in a company you are already working at?
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