Short Sale in New York City: The Truth about Short Sales and Your Credit Score

January 22, 2014 by

Short Sale in New York City: The Truth about Short Sales and Your Credit Score

One of the key factors to the attractiveness of a Short Sale is the assumption that actually selling your home, even if it’s for less than what you borrowed, won’t cause as much damage on your Credit Score as a Foreclosure.  Because this is such a central issue the questions begs to be asked whether or not this is true?

Not to disappoint you but, according to many experts, claims that Short Sales cause only a minor drop in your Credit Rating are simply false. In fact, in certain cases, particularly when your mortgage payments are more than 90 days late, a Short Sale can cause your FICO score to drop by as much as 150 points.  This is very similar to the hit it would suffer upon a Foreclosure. [Read more...]

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Short Sale in New York City: The Benefits of a Short Sale

January 19, 2014 by

Short Sale in New York City: The Benefits of a Short Sale

One of the pressing questions for New York City homeowners who are faced with the possibility of default on their mortgage payments is how a Short Sale might benefit them? Is a Short Sale worth all the effort and time you need to put into it? And what, if any are the advantages of a Short Sale over a foreclosure?

Here are some answers:

1. A Short Sale helps avert the social and psychological stigma of a foreclosure. The word foreclosure itself leaves a bad taste in the mouth, not to mention a long-lasting blight on your credit score. A Short Sale allows you to retain the personal dignity of knowing you did whatever you could to recover the value of your home, honor the commitment to your creditor(s) and preserve your financial status. [Read more...]

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Short Sale in New York City: What is a Short Sale?

January 18, 2014 by

Short Sale in New York City: What is a Short Sale?

Following the subprime mortgage crisis in 2008 and the ensuing recession, many homeowners have found it difficult if not impossible to continue making their mortgage payments. In response to these circumstances a growing trend towards Short Sale has been emerging as an alternative to dreaded Foreclosure. In fact, Short Sale deals accounted for about %20 percent of all home sales in New York City in 2012.

What is a Short Sale and how does it work?
To put it simply, a Short Sale means that you sell your home for less than what you still owe to the bank. Although in a short sale scenario you will remain in control of the selling process, a Short Sale can only close when approved by the bank that issued your home loan. While banks have been growing increasingly receptive to Short Sales as they are often less costly than Foreclosures, not all Short Sale requests are approved. [Read more...]

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