If you find yourself in a situation where you are unable to make your mortgage payments and are nearing foreclosure, it may be time to consider an Arizona short sale. While no one wants to be in this situation–it may seem like a losing battle–there are options available. An Arizona short sale could provide you with the opportunity to live in your home rent-free while the application and short sale process takes place. This is an optimum time to catch up on any other outstanding debts.
A question many people ask when entering an Arizona short sale is how it will affect their credit. Ultimately, it is important to remember that a short sale is better than foreclosure. After all, foreclosure is the most damaging to your credit status–even worse than bankruptcy! So basically, anything above foreclosure is a step in the right direction.
Like mentioned before, a short sale allows you to miss your mortgage payments for a period of time. Ultimately, this will show up on your credit, but will often show up with a reading such as “paid not as agreed.” This is still better than foreclosure which destroys your credit, sometimes to a point beyond recovery.
If you avoid foreclosure by choosing to go forward with an Arizona short sale, you will still maintain the similar buying power you had before. You should be able to be approved for car Mortgages, credit cards, store cards, and consumer goods not long after your Arizona short sale. Believe it or not, you might even be able to purchase another home in as little as two years.
Ultimately, future creditors may look at this mishap with a forgiving eye. They will likely realize that you were doing the right thing in spite of experiencing a legitimate hardship.