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  • Short Sale While Current

    It is a common myth provided by real estate agents and Attorneys alike that a short sale is not possible unless you are late on your payments. This is not true. We have assisted many clients with short sales when they were current on their mortgage payments.  If your Lender or Servicer participates then you can short sell while you are current on your mortgage payments.

    If you short sell a home while you are current on your payments, you can significantly lessen the negative impact on your credit. What really impacts your credit score is being late on your payments. In most cases the debt is reported as “debt settled less than the full amount,” “account paid in full for less than full balance,” “paid as agreed,” “paid as settled,” “negotiated,” “paid in settlement/never late,” or “account legally paid in full for less than full balance” and the credit score usually falls only 15-35 points.  Click the links below to see testimonials from past clients who have short sold their homes while they were current on their mortgage payments. Also feel free to click here on tips for how to rebuild your credit.

    Moreover, if you are current on your mortgage, you will not have a Notice of Default or a Notice of Sale/Trustee Sale Notice/Election to Sell recorded in the county recorder`s office, so it will not be a public record.

    In certain circumstances you can be prequalified to buy another home one day after short selling your house, if you are current on your mortgage when you short sell. This is a FHA program, and some of our clients have qualified so long as they were not delinquent in the past 12 months when they short sold their home.  They would have to show that they were not taking advantage of the decline in the market and would have to purchase a more affordable home than the one they short sold. Some common reasons include: moving to another school district, they had a hardship that forced them to sell, a failed business, the interest rate was going to adjust in the near future, etc.

    SummaryShort Sale Approval Letter(s)Credit Effects
    Sellers short sold their house while current and their credit score was in the 700s afterwards.1st:Citimortgage
    Seller short sold her house while current and her credit score only dropped 15 points after the short sale.1st :Bank of America
    2nd:Bank of America
    Seller short sold his house while current and his credit score was 780 before the short sale and 750 after the short sale. He ran his credit score a year later, and the score was up to 798.1st:Suntrust


    Van and Associates Law Firm has helped many in the Las Vegas and Henderson community with foreclosure, short sale, bankruptcydebt settlement, loan modification, and personal injury.

    Please feel free to contact us today so that we may discuss the options that are available to you.

    Van and Associates Law Firm at 702-529-1011