Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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How A Knoxville Short Sale Affects Your Credit

stop-foreclosure-short-saleKnoxville homeowners who owe more on their home than it is worth are put in a very difficult situation. Oftentimes, the decision to short sale is not an easy one. Homeowners often wonder what the implications of a short sale will mean for their future, particularly on their credit score. If you're considering doing a short sale on your Knoxville home, here is how a Knoxville short sale can affect your credit. In order to avoid foreclosure, many Knoxville homeowners opt to do a short sale. A Knoxville short sale will do less damage to a homeowner's credit than a foreclosure. In addition to a Knoxville short sale appearing on your credit score, late and missed payments will also do some damage to your credit score, along with any other delinquent accounts. As far as how a Knoxville short sale will damage your credit, it depends how the short sale is reported to the credit bureaus. In many cases, lender will report the sale as "settled," which shows that only part of the debt was repaid. In some cases, it is possible to get the lender to agree to report the debt as "paid," which will do less damage to your credit. In some cases, if the short sale was reported incorrectly as a foreclosure, the damage can be much worse, which is why it is very important to see how it was reported after a Knoxville short sale. If it was reported incorrectly, there are steps that can be made to get it corrected. As far as how low your score will go, it can drop anywhere from 85 to 200 points depending on your previous score and how behind on payments you were. Still, it is important to remember that a Knoxville short sale typically does far less damage to your credit than foreclosure. Are you thinking about completing a short sale on your Knoxville home? Do you want to hear what options you have to avoid foreclosure. If so, do not hesitate to give my team and I a call at 865-696-9002 or via email at [email protected]. All of our services are done at absolutely no cost to you.

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