Will My Credit Ever Be the Same?
You have probably heard that both foreclosure and short sales, like bankruptcy, will negatively effect your credit. It's true. But there is a difference in the impact that each has on your credit. A foreclosure appears on your credit report as an unpaid debt and will often cause your credit score to drop by 200 points or more. A short sale, on the other hand, will usually be reported as "paid-settled" and this will have less of a negative impact on your scores. In general, a short sale is a wiser choice than a foreclosure for the owner.
For help in deciding if a short sale is the best option for you and your credit report, and for credit repair assistance, contact Sommer & Engelhart, Attorneys at Law, online or by calling 866-446-6298. We provide a free initial consultation.
Restoring Your Credit
Even before you find yourself in a foreclosure or negotiating a short sale, you may have already ruined your credit by not staying current with your payments. But any damage you do to your credit score in a short sale can be regained.
Once our attorneys help you get rid of the burden of your mortgage, there are several steps you can take to begin your credit repair process:
- Rent an apartment.
- Pay your utilities — gas, electric, phone, garbage and water bills — on time.
- Continue making credit card payments and car loan payments on time.
- If you are unable to make credit card or car loan payments, you still can start with baby steps by taking out a small loan from the bank for $500 and paying it back on time.
While these may seem like small or insignificant actions to you, these types of things will slowly rebuild your credit so that you will be back in good standing within a few years.
To learn more about how you can start the credit repair process following a short sale or foreclosure, contact our lawyers to set up a no-cost consultation. Call 866-446-6298 or contact us online.
