What Does a Short Sale Do to Credit?

If you own Branson real estate or Table Rock Lake real estate that’s underwater you might be considering the short sale process. However, you might not know what a short sale can do to your credit. While it's true, a very small number of people might not see any negative effects, but that's not true of the majority. When weighed against a foreclosure though, a short sale is not nearly as painful.

The Short Sale Process: What You Can Expect

When you short sale a home you're basically getting an agreement from your lender to take less for your home than what's owed. Banks will often work with homeowners to avoid foreclosure if the homeowners approached the bank with sound offers in a reasonable amount of time. The reason is that foreclosure is a costly endeavor for the banks in terms of lawyers, paperwork, and eventual upkeep, and resale of the property. Now, as it relates to your credit report, the home doesn't show up as a non-pay like a foreclosure. It does, however, show that you sold the house for less than you were lent. While this can be a detrimental blemish to your credit for some future lenders or even individuals like employers or landlords, it's not as catastrophic as a foreclosure. A short sale shows that you made every effort to sell the home. In today's market, many people realize that homes were purchased for far more than their value today. So, while a short sale will appear on your credit report for 2 to 3 years (which is much shorter than seven years for foreclosure), it's not nearly as damaging in the long run.

Charlie Gerken: Short Sale Specialists Here for You

As a Branson real estate and Table Rock Lake real estate agent, I'm quite familiar with the short sale process. This is an integral step for having a smooth short sale transaction. You need an agent who has the knowledge in short sale procedures, but also the connections within the industries to make a short sale happened. So whether you're a buyer or seller looking into the short sale process, contact me for a no-cost, no-obligation confidential meeting. Get started by sending me a few facts about your situation and I'll be happy to see if we can make a short sale a reality for you.