* Will a short sale "save my house"?
In the sense that you will be able to continue to live in the house, unfortunately, the honest answer is no. A short sale is only done involving a legitimate sale of the home from the foreclosed owner to another unrelated party. Many of the cards and letters you have gotten have probably promised to save your house, however, this is very seldom possible. We would recommend that you NEVER sign away your deed to someone who promises to "save your house" from foreclosure. It is probably a scam.
* Will a short sale "save my credit"?
The short answer is yes and no, a short sale can save you from the worst credit disasters.
By defaulting on mortgage payments and having a foreclosure filed against your property, you have already done damage to your credit. Your credit score has declined and those negatives will stay on your credit report for some time. However, it will get much worse if you allow the foreclosure to continue and do not try to short sale the property.
Once a foreclosed property is sold at auction, your credit score is further reduced and when the foreclosure is completed via eviction and repossession of the home, your credit will be even further damaged. If you can complete the short sale BEFORE either of these takes place, then you can prevent that further damage to your credit. In addition, when the short sale is completed, it shows up on your credit as a "Paid" mortgage and a canceled foreclosure, which shows future creditors that you did take care of your obligations.
If your situation eventually winds up in bankruptcy, then that is the worst item that could appear on your credit report and it will remain there for years and cause numerous difficulties in getting future credit. A short sale can help avoid this, but the key is not to wait.
Contact Fred Sed 949-274-3733 if you want to see if you qualify for a Short Sale.
