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Shortsale

I would like to know how to determine the listing price for my home as a shortsale and how will this impact on my credit which is in the high 700s. My credit has never been low and I am really concerned. The home is literally upside down by about $110,000 I am up to date with mortgage payments which will change once the tenants leave. I didn't want to deal with continuing to rent because I am not sure that I will get the full amount to cover all the expenses.  How long will this negative info stay on my credit report and how long will it take to rebuild my credit.
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June 20 2013 - McDonough
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A short sale involves seeking approval from your mortgage lender to sell your home for less than the balance of the mortgage as a way of avoiding foreclosure. To convince the lender that you will not be able to meet your mortgage repayments and that a short sale is the best option, you will need to supply: a hardship letter describing your financial situation, proof of income and assets, copies of bank statements and a comparative market analysis (CMA) showing that the state of the property market is such that you would not be able to sell your home for the full mortgage amount.
You can buy another home in 2 years.
A short sale can lower your credit score by 100 to 300 points depending
how your bank will report the case ..as complying with payment or default.
For a comparative market analysis [Email removed by Zillow moderator. Please see our Good Neighbor Policy.]

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June 20 2013
Check to see if your loan is a FANNIE MAE or FREDDIE MAC....if it is they are now allowing you to short sale the property while you are making your payments on time if it is owner occupied...if not ALERT your lender or servicer of the possibility of defaulting....through my experience with short sales, servicers and lenders prefer that you inform them of the hardship prior to defaulting as many homeowners are turning to STRATEGIC DEFAULTS....your credit will only be affected once you stop making payments as you know but the quicker you sell the less of a decline on the credit score....find a REALTOR that knows the ins and outs of the short sale and foreclosure process....this would help you greatly....please feel free to contact me and I can give you some pointers.
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June 20 2013
If you are able to qualify for a hardship and you the lender approves the shortsale...then the hit that you take on your credit scores stays with you for about two years.  If you are up to date on yoru mortgage and not behind then your credit score take less of a hit than if you are behind on payments.  So the hit if you are up today could be around 50-100 points and if you are behind payments...then you could get dinged greater than 100 points.
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June 20 2013

I cannot recommend strongly enough that you speak with an attorney well versed in this process. It has always been combative, but now shorts have entered into a new realm of lunacy.

Bottom line is that in most cases foreclosure works better than a short sale for the lender - and it's all about the lender, make no mistake about that.

I have plenty of info about this process on my site along with a very experienced and successful law firm, have a look as everything is at no cost to clients. You have zero to lose.

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June 21 2013
 
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Shortsale
Profile picture for Hank Miller
Latest reply by Hank Miller
June 21 2013 | 4 answers
  • Posted by user1886065
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  • June 20 2013
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