The biggest question I get asked when I start speaking about a Short Sale is what will it do to your credit rating. John's answer.... it is going to hurt your credit score but in general a foreclosure would hurt your credit score a lot more. However a Short Sale will allow your credit to recover faster then a foreclosure and in most cases you can apply for a mortgage in 2 years vs 7 years for a foreclosure.
Many people believe that the easiest way to dispose of a home is through foreclosure, but what few realize is that (depending on loan type) they can potentially be sued after foreclosure by the lender for the deficiency. Loans like a home equity line of credit are a personal debt and therefore are not automatically extinguished by foreclosure.
The good news for my clients is that Arizona as Anti-deficiency laws on the books while they still do have some grey area. If you are doing a Short Sale with me you will be protected because I insist that we use a Real Estate Law Firm in order to make sure you are protected.
Until Next Time,
John C. Palmay
azrealtorjp@gmail.com
480-529-9063
@johnpalmay on Twitter
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