Short sales can be the best way to get out of an unfortunate situation.  A number of people need to sell their homes due to job transfer, job loss, divorce or just running out of room. They may be caught in a situation where their current home is worth less than they owe on the property. If they are current on their mortgage and the lender is willing to accept a lower payoff, they may be able to sell their present home and turn right around and purchase another home. In order to take out a new mortgage, it is critical that they do not have any late payments on their present mortgage in the last 12 months.  It is also critical to confirm with the present lender that they will report the short sale to the credit repositories (Equifax, Trans Union and Experian) as "settled for less than the full balance."

When we see this listed on the credit report it allows us to continue to approve them for a new mortgage.  Nobody likes to lose money on an investment but this presents a good alternative to a foreclosure or a serious delinquency being reported on the credit report, which will preclude them from getting a new mortgage for anywhere from one to three years.

P.S.  Just a reminder:  99 Days To Go to take advantage of the $8,000.00 Housing Tax Credit!!

Since 1980, Phil Turner has helped over 10,000 clients achieve the dream of homeownership. If you are planning to buy a home, please contact Phil.  You'll find his professional service and years of experience exactly what you need in Eastern Connecticut's current housing market.

Phil can be reached at McCue Mortgage, located at 8 Union Street in New London, by calling (860)444-0650 or (800)781-1180 or By EMAIL.