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SHORT SALE BENEFITS
A
“Short Sale” is a much better alternative to Foreclosure or a
Deed-in-Lieu of Foreclosure, and will do less harm to your credit. A
Foreclosure will drop credit ratings by 200-300 points and remain on
credit reports for seven to ten years. It usually takes 5 years before
new mortgages may be obtained, with 7 year lending restrictions. A
Short Sale, however, may drop credit by 60-100 points, and about 18 months is
the common waiting period before new mortgage loans may be procured.
Further, a "Foreclosure" on your credit will require you to answer
certain questions on applications, such as for new loans or even
employment with a "YES, I have had a foreclosure". In "Short", Short
Sales save your future ability to borrow.
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