Late On Your Mortgage Payment- Avoid Foreclosure, Benefit From Short Sale
If you are one of those home buyers who benefitted from the housing bubble several years ago, then you are probably in a financially difficult situation. The real estate market all over the country including Prince George County, Charles County, Washington DC and New York dipped down low when the housing bubble was busted in 2006 which resulted from the collapse of the US mortgage industry. Due to this, the property prices declined significantly.
Why Avoid Foreclosure?
It is extremely important to avoid foreclosure because a foreclosure negatively impacts your credit score. It reduces to credit score significantly and it takes about 10 to 12 years to re-establish your credit rating. With a bad credit score, you can’t borrow unsecured loans. You are only allowed to get secured loans which have a high interest rate and can only be acquired if you pledge collateral against it. The collateral has to be a valuable possession like a car or real estate.
What is a Short Sale?
Short sale is the perfect way to repay your mortgage loan in liquidity crisis without damaging your credit score. A short sale is a sale of a property like a home, building, condo or an apartment. This is a situation in which your lender (the financial institution) agrees to receive a discounted payoff on the mortgage loan. The remaining amount is waived for good.
Slight Decrease in Credit Score
In a short sale, the borrower gets a redemption status when the lender reports the credit reporting agencies about the situation. The redemption status prevents the credit score of the borrower from getting damaged significantly unlike in the case of a foreclosure. In the short sale, your credit score falls only below 50 points while in a foreclosure it drops dramatically.
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Gerald Brown Realty & Appraisals Inc is a Certified Real Estate Brokerage and Appraisal company . Membership includes:
GCAAR- Greater Capitol Area Association of Realtors
MRIS-Metropolitan Regional Information Systems
NAR-National Association of Realtors
GRI- Graduate of Realtors Institute
RAA - Certified Residential Accredited Appraiser
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12115 Old Marlboro Pike
Upper Marlboro, MD (301) 574-3462 Office
(301) 574-3463 Fax