One of the biggest benefits of doing a Short Sale for the homeowner is to avoid the credit damage caused by Foreclosure. Here's some more details.
One of the primary benefits of a successful Short Sale is avoiding the credit damage of a foreclosure. The damage to your credit done by a foreclosure lives on for years – at least seven years.
Your credit will recover much quicker from the credit dings of a few late mortgage payments, if you keep your other accounts current. So, consider allocating your funds to meet basic necessities (food, utilities, household needs, auto expenses and such) first. Beyond paying for necessities plan to pay other bill to keep as many accounts current as possible.
Keep “necessary” Accounts Current
When deciding which credit bills to pay review the terms of your credit accounts. If you are using a credit card to temporarily pay for necessities, you want to be sure to not jeopardize the availability of that account.
A Short Sale may be just one part of a larger effort to get through a tough period. We want to help make it possible for your credit to recover quickly. We need to avoid foreclosure – and that we can help with.