There are many reasons why a homeowner is better off if they can manage to negotiate a short sale over losing their home to foreclosure. Following are more reasons why this is so:

• If you lose your home to foreclosure, you credit score may be lowered anywhere from 250 to 300 points. This dramatic change can affect your score for more than three years. A short sale’s affect will lower your score as little as 50 points and can be on your credit score for as quick as 12 to 18 months.
• Foreclosure remains as public record on a person’s credit history for 10 years, or more. Short sales are not reported on a person’s credit history and the loan is typically reported as ‘paid in full, settled’ or ‘paid as negotiated’.
• Foreclosure actually becomes a very challenging issue in regards to security clearance. For example, if a police officer, a person in the military, in the CIA, or in Security or any other position that requires a security clearance - in almost all cases the clearance will be revoked and the position will be terminated. Short sales on their own do not challenge most security clearances.

For more information about Kapolei Real Estate please contact John Riggins, Certified Distressed Property Expert.

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