A Hampton Roads short sale represents real value for the homebuyer, of course. But to some extent, it is also a boon to the seller. Being able to unload a property that’s underwater helps avoid most dire credit consequences for a Hampton Roads foreclosure.
But lingering credit damage can still result from any short sale – if the short seller allows it to happen. Should you find yourself in the position to re-enter the market sooner than you think if you take action to improve a damaged credit score following a Hampton Roads short sale. Here’s how:
- Sit down and write out a strategic monthly payment plan for all open credit accounts and loans. It becomes real when you put pencil to paper. If the total is unrealistically large, contact as many lenders as needed to ask to reduce the payment amount. Making on-time payments is how you will build and repair your credit.
- Apply for a secured credit card. It is tempting to use only debit or prepaid cars, but this does nothing to rebuild credit. Secure a credit card with a deposit, and then use it to make calculated purchases you know you can repay on times.
- Be on time with all rent, medical bills – and every other account/ Immediately after a short sale in Hampton Roads is the right time to downsize and be frugal – but you need to keep in certain accounts – bills, rent, etc. – open. It cannot be overstated: the key is to make all payments consistently on time.
Not everyone escaped unscathed from the recent downturn, but it’s also true that lenders are now a lot more familiar with good prospective borrowers who could not avoid its consequences. Whether you have been through a Hampton Roads short sale or not, if you are looking to buy a home in town, do give me a call. I’ll put you in touch with my mortgage broker, and we will see how close you are to owning your next home!
Posted on December 3, 2013 at 3:48 pm by Janice Hollowell