There is a lot of information all over the Internet about how a Chester County short sale works, and understand the short sale process will only give you an advantage as you become part of this dynamic real estate environment. Here are three things that you can expect when working with a Chester County short sale.
First, short sales will damage your credit. You have to understand that when you list your home as a Chester County short sale, you are leaving lenders with some of the debt that is owed on your home. With this in mind it stands to reason that your credit would be affected with a Chester County short sale. That said; in many instances your credit will suffer less damage that with a foreclosure. This isn’t a hard and fast rule so you should always discuss all of your options with the bank before making a final choice.
Second, you can still qualify for a short sale if you have a second mortgage on your home. Some banks offer other lenders a specific sum of money for releasing the rights of the second mortgage and promising not to pursue deficiency litigation. In many instances, the other lender will agree to the deal because they are at least getting some of the money back. If the other lender refuses to waive the debt, it may be difficult to secure an approved offer from the banks because all lenders have to approve any offers.
Finally, you can buy a home after a short sale. You just have to take some time to rebuild your credit. If your home was listed as a Chester County short sale because of divorce, death, or other unforeseen circumstances, you may eligible to buy another home in as little as two years. On the other hand, if your home had to be sold as a Chester County short sale because of financial mismanagement, you may have to take at least four years to build your credit before you are eligible for another home purchase.