posted by admin on Feb 4
A house is your home until it is foreclosed either by banks or your good old realtor. With the current recession of the economy, a lot of Americans are having a bleak future of retaining ownership to their mortgaged houses. This is a sad turn-out not only to home owners but to the government as well as to the credit bureaus who also ends up with nothing to gain. All of a sudden, a “buzz” goes around town claiming that short selling your property is the quick fix to the problems with foreclosures.
This ¡°short selling of property¡± proves to be more of a fact than a gossip. This month alone, a record of one in every ten home sales is for short selling was reported by the National Association of Realtors. Short selling means that you cannot pay your mortgages anymore and are opting for a modification of your mortgages or even a ¡°quick sale.¡± Since a lot of people are turning into this so called solution, the National Association of Realtors conducted a survey only to find out that there is an alarming increase of people opting to short sale their properties. It has been reported on the survey that 16 million homeowners have already applied for the said fix.
But what does the Industry Experts have to say about this latest craze conquering town? Short selling your property is quick, it might cover for your debts for a period of time but it will also have an effect on the long run and will even hurt your credit report for as much as 7 years. Even if your debt is paid, creditors will still report or your short selling of property to credit reporting agencies who will in turn add it to your credit report. This will mean to creditors that you were not able to pay your dues as agreed. This is merely enough to put you on hold on your next loan application.
So if you are a homeowner who; like many other Americans, are experiencing the effects of the economy¡¯s recession, it is a wise advice to look for other options. Lenders only agree to short selling to have an assurance that they will still get something from you. They only want to minimize their losses and short sale houses will gain them more than foreclosed or vacant houses. Don¡¯t let this thing happen to you. Take control of your finances. Study your free credit report.
Opting for better debt management proves to be the better choice. The government is doing all it can to help Americans gain a stand amidst the recession of the economy. Several solutions are already imposed by the government, from the creation of an Agency that will make sure consumers enjoy their rights to online help that is supposed to guide consumers on their credit score.
In an unstable economy like this, it is considered unwise to borrow more than what we can pay. Being a responsible borrower will help us do away from sticky situations like our very own homes taken away from us.
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