Hi everyone Jason Wells here with Wells Realty and Law Group thank you for your time today. I am back again this week to answer a question from an actual homeowner who needs to sell their home quickly. If you have a question you would like answered in our blog or want to discuss your real estate options please contact me through my website to get started.
In our blog today the big question of the week surrounds how a short sale might affect your credit in Arizona. Whether you will be going through foreclosure, a loan modification, or a short sale it is important to know what this will mean for your credit score moving forward. Those who complete a short sale or a loan modification will see a small decline, maybe one hundred points, in their credit score. This will mostly be due to missing your monthly mortgage payment and not the actual short sale process itself. In a foreclosure you will see a much sharper decline in your credit score while also having to wait much longer in order to purchase a new home. Those who complete a short sale will normally be able to purchase a home within two to three years of selling their distressed property. Likewise, someone who ends up going through foreclosure will have to wait roughly seven years before they will be able to qualify for a new home loan. In most cases your ability to buy another home will be greatly affected by how much of a down payment you can make. Most homeowners who have just completed a foreclosure or short sale will not have twenty five percent to put down on a new home.
If you have a distressed property or are already behind on your mortgage payments now is the best time to sit down with an experienced agent to discuss your options. In getting all of your questions answered and learning about your options you can be better prepared to solve your real estate issues. Thanks again for your time today and remember here at Wells Realty and Law Group we do what other agents can’t.