Effects of Short Sale or Pre-Foreclosure Sale on my credit
I am trying to get some information on what a "Short Sale" or "Pre-Foreclosure Sale" will do to my credit? Can anyone tell me exactly what will be put on my credit report, and for how long in each instance? The mortgage is in Maryland, and it's an FHA loan.
Thanks a LOT in advance for any help.
How a lender reports the transaction(s) will vary from lender to lender. A preforeclosure sale is not necessarily a short sale.
It's most probable that the loan history of missed payments will remain on record.
If the mortgage is foreclosed, that will remain, too.
If the property is sold at Sheriff's or Trustee's Sale, that blemish will haunt you for up to 10 years.
It's better to sell voluntarily (even short) than allow the foreclosure to result in a forced, public sale.
How you frame your request for short sale can determine how they report the transaction. It is negotiable.
In some cases, the lender will report the mortgage as being paid as agreed. That's best.