Dallas Short Sale – How is the Seller’s Credit Affected?
Sellers going through a Dallas short sale will take as big a hit on their credit score as when going through foreclosure. See the correlation below:
Foreclosure
Sellers will take a hit of between 200 to 300 points, depending on the overall condition of credit of their credit. Short Sale
The effect of a short sale (assuming that the sellers are more than 60 days late) on a seller’s credit report is the same as that of a foreclosure.
Waiting Before Buying Another Home
Foreclosure or Deed-in-Lieu of Foreclosure
A seller who wants to buy another home after a foreclosure will need to wait 24 to 72 months before a lender will consider making another loan to them. Short Sale
Some agents say the good news for short sale sellers is the wait is much shorter before buying another home, and new Fannie Mae guidelines make that a true statement.
Short Sale / Foreclosure Deficiency Judgments
The bad news is that a Dallas Real Estate seller could be subject to a deficiency judgment for the difference between the loan amount and the amount paid. In general, a foreclosure sale wipes out the right to a deficiency. Some states have laws regarding personal guarantees, which could also result in a deficiency judgment, if the home owner is held personally liable for loan repayment.
If you’re a seller trying to decide whether to let a home go through a Dallas Foreclosure versus attempting a short sale, salvaging your credit may not be an advantage to doing a short sale, if you’ve fallen behind in your payments. There is no credit score advantage for a delinquent borrower on a short sale over a foreclosure.” The only advantage is being able to buy another home within two years over the three- to five-year period required for foreclosures. You may want to consult a Dallas Realtor or seek legal and tax advice before making that decision.
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