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Short sales can hurt your credit. I have heard real estate agents say that it doesn’t, but that is not true. This article explains what happens.

How Much Damage Can a Short Sale Make on the Credit Score?

By Rose B

The Obama Mortgage Modification Program is not helping a lot of homeowners keep up with their mortgages. This is because a lot of people do not qualify for such assistance. As a result, more and more homeowners are going into foreclosure. Before going into foreclosure, though, you have to know first how the process works and what its effect is especially in your credit score. After you have all the information you need, you can now delay the foreclosure process for your advantage.

Two of the most important elements you need to know regarding foreclosure are the processes involved and the amount of time it will take to complete it. The time frame of the foreclosure process differs from city to city and state to state so a careful research is in order. Time frame also varies depending on the lending firm you owe your mortgage loan to because different companies have different rules and regulations. Another factor to consider is the type of loan you have.

When it comes to foreclosure proper, it has the same regulations anywhere you are in the US for it is covered by the State Law. The State Law is considered as Federal so it applies for the most part of the US. If you are doing your research, you can go to your bank and ask for the detailed steps or procedure they must take to foreclose a property. In general, if you missed out on three consecutive months after your last payment to them, the banks are forced to file for the foreclosure of your house through the courts.

After your lending company took the matter to the courts, it is only a matter of time before you receive a mail informing you of the situation. Do not ignore this warning because it will only make the matter worse. The best thing to do after receiving the foreclosure notice is to go immediately to your lending firm and negotiate with them. Ask them to give you other options in order to save your house.

You have the right to request for a court hearing regarding your case and you can file it in the Circuit Court of the county you live in. This is a good delaying especially for courts that has a lot of case on their plate. The hearing could delay your foreclosure process from two weeks up to a few months.

Most of the time, the hearing result will be a denial for your part. The denial rate for foreclosure court hearings is a whopping 95%. Another option in this situation is to file for bankruptcy. This would delay your foreclosure process even more. Even so, bankruptcy can cause a lot of damage to your credit score so better think twice first before going for this option.

Another option available is short sale. This will cause less damage to your credit score and credit report as well

Now, if you just decide to submit to the foreclosure, you will be given one to three weeks to vacate your house else the local authorities force you out of it. If you are trying to search for prospects of wonderful real estate properties, you can check out See Scottsdale Houses for Sale or visit Real Estate in Scottsdale.

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Tags: Foreclosure, Real Estate, Short sale