With a short sale, a buyer sells his home for less than the value of the remaining balance. Because Memphis is struggling economically, many homeowners may just decide to abandon a property. However, this is a mistake.A foreclosure will definitely lower a homeowner's credit score, but this may not be the case with a short sale. The mortgage company decides how to report the short sale to the three credit reporting agencies. According to Credit.com, there are two ways to report short sales. One method is with "Settlement accepted on this account." This simple states that the lender accepted the terms of the sale. The second method is "Settled for less than the full loan amount." This one has a more negative connotation for Memphis homes.
A short sale is better than a foreclosure. It shows future lenders that you made an effort to make the best of a bad financial situation. By abandoning your Memphis home, you also send a message that you abandon your debts.
The Carstensen Team is a real estate company in Memphis that helps clients to get the best deals when selling their homes, even if it is a short sale. For more information, please visit us at www.justlistedhousesinmemphis.com