Why Short Sell?

It is a crystal clear fact that foreclosure and short sale affect your credit score. There is no second opinion in this regard. However, the severity of the loss is worth mentioning. As a result of foreclosure, the credit gives you no room and in a case of short sale, the redemption status will show the credit as pre-foreclosure. A foreclosure might stop a homeowner from purchasing a home for a longer period of time as compared to the short sale process. Further, a foreclosure has severe impact on individual's FICO score, which results in a score drop. In most of the foreclosure cases, people report a drop of 200-300 points in their credit score. However, if a homeowner goes for short sale, he will suffer a relatively smaller decrease in his credit score. Another very important point in favor of short sale is that property sells like all other real estate properties and family, friends and neighbors do not know that the homeowner is selling his home through short sale. Having signed the escrow for short sale, the homeowner may move freely in his home. A foreclosure badly affects the credit history of the homeowners and plunges them into a series of complex problems. So, if you are near to foreclose your home, we highly recommend you to negotiate with a professional real estate lender to avoid the severe impact on your credit score.