Short Sale Expert Illinois Broker Realtor Will Cook County Raymond Kennedy eXp Realty

Illinois Short Sale Information

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Short Sales - Affect on Your Personal Credit

Will a Short Sale Harm my Credit?

One of the most common questions I get is how will a short sale affect your credit. The quick and short answer, yes, it will have a negative effect on your credit. It is important to understand that there are varying factors that will determine how much of an affect it will have. You should always consider that credit is something you can rebuild so when considering a short sale, if you have an existing hardship, it likely that a hit to your credit score is inevitable.

Late Payments of 30, 60 , 90 Days

Many homewoners who are in a position to consider a short sale may have already missed some payments on their mortgage. If you have, this alone will start having a negative impact on your credit score. If you are in a position where you can not make the monthly payments a short sale maybe your best option. If you are successful at completeing a short sale with the right assistance, you could potentially remove the obligation to make those payments and be foregiven of any shortage of what you owe. In the long run, this might be the best thing you can do so you can start rebuilding your credit.

How will the Short Sale be Recorded on My Credit?

This might vary but typically you can expect it to read something like... "Paid Less than Agreed". This will have an additional negative impact on your credit. The general rule is that a short sale will put you in a position to buy a property in early as two to three years. This will depend on various factors such as loan type, personal circumstances. In comparison to a judicial foreclosure in Illinois, a short sale will put you in a much better position and quicker recovery period to purchase another home and build your credit.

How will a Judicial Foreclosure Affect my Credit?

This a very hard to answer because in Illinois, a lienhoder can pursue a mortgagor the amount they receive less than what is owed to them. This means you could potentially be in debt for years after a foreclosure. It also means you may have to seek other options to protect yourself from the debt collection efforts such as bankruptcy which can add years to the process. It's hard to say to what extent they would pursue this which is why a short sale will offer you an opportunity to mitigate the damage a judicial foreclosure would result in.