Among short sales, deed in lieu, and foreclosure, which of them is more dangerous to your score in credit? Your credit scores frequently affect you in almost your entire life. Many common questions from people are, “which one is better, is it the short sale or foreclosure?” this informative blog will help you get answers to some of the most important questions asked.
Unluckily, many homeowners are facing critical times, and this decision impending about turning over their homes can be such a difficult issue but yet a necessary measure. These property owners will be more likely concerned about the effects of foreclosure and how foreclosure can affect their scores in credit.
Understand Your Options
If you are to consider a short sale, deed in lieu or foreclosure, you should know and weigh your options. This informative blog is going to answer some common questions homeowners will want to be informed about. Every option here has its merits and demerits, but the surest way to make an informed decision about your case is to choose to talk to a knowledgeable foreclosure defense lawyer.
Short Sale, Foreclosure, Deed in Lieu – Commonly Asked Questions
There are many common questions surrounding short sales, foreclosure and deed in lieu of foreclosures in Virginia. Keep reading for useful answers to some of the most common.
What are the options before a homeowner who cannot make their payment?
Homeowners have a choice of losing their home and let it go into foreclosure – this will decrease their ability to get a loan and their credit score for a minimum of seven years. Homeowners who are unable to make their mortgage can also take the choice of the deed in lieu foreclosure. Through this deed in lieu, a person can decide to hand over their home to the lender income back to the closure of the mortgage. On the contrary, this can also leave a negative history of your credit.
Is Short Sale Better Than Deed in lieu or Foreclosure?
Many people are convinced that foreclosure is more devastating to your credit score, and any other option apart from foreclosure is better. Depending on the situation, it is not always true. If you talk to an experienced foreclosure defense lawyer, you can get help and have a better understanding of the difference between deed in lieu instead of foreclosure and short sale.
What does a short sale, deed in lieu, foreclosure really do toy your credit scores?
There can be some mortgagees who lean more positively towards the short sale over the foreclosure. The scoring system of the credit will not differentiate deed in lieu, foreclosure, or short sale. Before making an important decision, read about the benefits of the deed in lieu of foreclosure as well as short sale negotiations. Remember, talking to an experienced foreclosure defense lawyer, will help you understand the differences between deed in lieu of foreclosure and short sale. The bigger your score, the greater the fall.
Many people wonder, what is the impact of a score of a foreclosure, mortgage delinquency, deed in lieu, or short sale. ‘FICO Analysis’ is a tool that is used to answer this particular question. This analysis shows that the people with higher scores in credit face significant drops in credit scores that will take a longer time to rehabilitate to the top level they once had; assuming that the credit will remain in a good standing.
What is Loan Adjustment?
Some individuals may opt to seek a loan restructure or modification of what they have to pay every month. This is called repayment plan negotiation or loan modification.
Contact Us and Learn More!
It is complicated and difficult to make a decision on how to handle a mortgage. The team of lawyers at our law firm is very ready to help you contend in the legal arena. Give us a call or contact us online to schedule an initial consultation to discuss your options.
