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What is a short sale and how does it affect my credit rating?

April 26, 2017affect Credit rating Henderson home selling real estate community sale short

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What is a short sale and how does it affect my credit rating?

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Linda, Jennifer is correct below that you sale your home for less than you owe on it. The lien hold must approve the sale and I would call your bank and discuss the options they might offer. There is a short sale , a deed in Lieu of foreclosure , a loan modification. The impact on your credit will vary and my personal expereince is my credit took a 125 point hit. There also may be tax issues if it is a investment home , if you live in it than you are ok on the tax issues the debt will be forgiven on the sale. Short sales are very common in Las Vegas and lenders are becoming more open to them and they take about 90 days to get a approval to close the deal. If you need further assistance please feel free to contact me.