Daniel RosenCredit Repair Business Mentor | Insights from 250+ Podcasts

What is a Short Sale? The HORRYFING TRUTH!

23 Feb 2023 · 1 min

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Daniel Rosen’s YouTube explainer defines a short sale (selling a home for less than owed when you can’t make mortgage payments), warns that credit bureaus typically report short sales the same way as foreclosures (causing similar damage to credit scores), notes short sales spiked during 2007–2009 (Great Recession), and directs listeners to his podcast for strategies to remove short sales from credit reports.

Questions this video answers

February 23, 2023.

From 2007 to 2009 (during the Great Recession).

Chapters

You gotta watch out for the sneaky thing that could ruin your credit. It's a short sale now short sales don't sound as bad as foreclosures, but they're reported the very same way and they do just as much damage to credit scores. A short sale is when you can't make your mortgage payments so you sell your property for less than the amount that you still owe. Banks often say short sales are a better option than a foreclosure because they allow homeowners to avoid the stigma of foreclosure. But in reality, most lenders won't distinguish between the two. Both are reported the bureau's is settled for for less than the full amount or not paid as agreed. So the fallout is the same. Short sales rise when the home values fall. They spike from 2007 to 2009 during the great Recession and they could be on the rise again. That's why you've got to know how to remove them from your credit reports. Tune into my latest podcast for all the secrets.