Short Sales / Foreclosures Impact Credit
Although real estate agents should know the ramifications of short sales and foreclosures on sellers, real estate agents are not licensed to give legal advice. Agents are not lawyers. If an agent demands that you pursue a short sale, you should ask to see his or her license to practice law. Nobody can make that decision but you and your legal counsel.
Sometimes sellers wonder if letting the home go back to the bank through foreclosure would be the least stressful thing to do. They don't know the pros or cons of a foreclosure, deeding the property back to the lender or doing a short sale. One main difference is the affect on credit. Sellers who manage to do a short sale might find . . . read more
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Comments
Good points. There’s really no good reason for a homeowner to agree to a short sale unless there is a very pressing need to unload the property, such as a major change in income or pending foreclosure. Apparently, though, if you’re anyone besides the seller, it’s almost always a great time for short sales, which should give sellers something to think about very carefully.
At least a short sale dings an owner’s credit rating much less than a foreclosure. That’s about the only logical reason to consider a short sale.