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How will a short sale effect my credit?

April 16, 2009 at 03:29 PM · Posted under Colleen Kuchta

A short sale in Real Estate happens when the owner of the property owes more on the property than what it sells for. This can happen when a home owner sells after property values have dropped drastically, or when an owner has taken out equity loans on top of the mortgage loans and the loans equal more than the value of the home.

Generally speaking, it will depend on your lender. Before you proceed with a short sale, you would be well advised to call them to find out how they structure and release the short sale. As well as, how are they going to report the payoff? A short sale can reduce your credit score between 60-100 points, but there have been times when the short sale does not affect your credit score negatively at all. (A foreclosure would be a minimum of a 150 point deduction) This of course will depend on your specific situation. For example, a seller that has missed recent payments and is doing the short sale to avoid a foreclosure would take a bigger hit than the seller that is current on their mortgage, but property values have decreased so they are unable to sell the property for what they owe.

If you decide to sell, and are facing a short sale/foreclosure situation, be sure that the agent you select to list your home has experience in dealing with short sales. Each bank has their own requirements. The Kuchta’s - Kelly & Colleen are very familiar with the short sale process/foreclosure process and have helped many sellers, as well as buyers with their transaction. Feel free to contact us for a no obligation, consultation 262-894-6512, or ckuchta@shorewest.com. We are here to help.

Posted By: Colleen Kuchta

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short sale/foreclosure advice

April 10, 2009 at 09:42 AM · Posted under Colleen Kuchta

Friends of ours recently lost their home to foreclosure. We can’t help but ask ourselves ‘How and why did this happen?’

As Realtors, we know that, in most cases a foreclosure can be avoided.

We have experience in negotiating with banks to help home owners avoid a foreclosure. If you are feeling overwhelmed, or can’t keep up with your mortgage; please contact us; The Kuchta’s - Kelly & Colleen. We are happy to help. As always, there is no obligation to use our services. Our advice is free and confidential. ckuchta@shorewest.com or (262)894-6512.

A short sale in Real Estate occurs when the owner of the property owes more on the property than what it sells for. This can happen when a home owner sells after property values have dropped drastically, or when an owner has taken out equity loans on top of the mortgage loans and the loans equal more than the value of the home.

Before you proceed with a short sale, the first step would be to contact your lender and find out what their requirements are for the short sale package. Most commonly, you will be required to complete a financial worksheet and compose a hardship letter explaining why you are not able to pay the balance you owe in full. There is also an authorization letter that you will need to supply, allowing us to communicate with the bank on your behalf. In many cases, commission will be negotiated by the bank as well.

If you decide to sell, and are facing a short sale/foreclosure situation, be sure that the agent you select to list your home has experience in dealing with short sales. Each bank has their own requirements. Kelly & I are very familiar with the short sale process/foreclosure process and have helped many sellers, as well as buyers. Feel free to contact us for a no obligation, consultation.