Posted on: 08th Jul, 2010 02:53 pm
My employment contract is ending and it has not been renewed. I've found a job in another city - beyond communiting. So I hve to sell my condo. I cannot get back what I paid for it. So I am going to try to get a short sale approval from my lender.
If I explain this to the credit reporting companies, would it help my credit score?
If I explain this to the credit reporting companies, would it help my credit score?
Hello! I did some research on your post and I think that no matter what your credit score will be affected. Not only that but there will have to be a waiting period before you buy your next home. However, with that in mind, a short sale is still better than a foreclosure.
It seems like you're in a pretty sticky situation because you don't really have a choice because your job contract is terminating but I mean it couldn't hurt to give them a call and explain your situation right? I've also heard that the amount your credit falls may vary and may also depend upon your past credit history(i.e. have you been pretty good with paying all your credit cards and other payments). It seems like it's a case by case issue in terms of how much your credit will drop.
It seems like you're in a pretty sticky situation because you don't really have a choice because your job contract is terminating but I mean it couldn't hurt to give them a call and explain your situation right? I've also heard that the amount your credit falls may vary and may also depend upon your past credit history(i.e. have you been pretty good with paying all your credit cards and other payments). It seems like it's a case by case issue in terms of how much your credit will drop.
If you maintain your mortgage payments you can do a short sale with very minimal impact to your credit scores, if any at all. If you do not make your mortgage payments then your credit will be affected by how late you go on those mortgage payments. The short sale may report as "settled for less than full amount" on your credit report but that comment doesn't hurt your score by itself, as I've helped people who have had a short sale who never went late on the mortgage and their credit score remained the same before and after the short sale. Commonly banks will only do a short sale of the borrower has been late on the mortgage, but not always, as in the situation where your employment is moving I have seen them approve short sales without going late. The key is to make sure all of your mortgage payments and other debt obligations have been paid on time and you will be eligible to buy a new home right after the short sale with FHA financing.
