does a short sale save their credit??

Foreclosures, Short Sales, Tax Foreclosures
1

I have been through some foreclosure training and my trainer said that if we could short sale someones mortgage instead of it going to auction that it would save their credit. But i just read an article that said they still would have bad credit??

Any advice. When talking to the homeowners do you tell them that if you can short sale the bank that you can save their credit?

Thanks
Sinamon

2

A short sale won’t undo the damage that has already been done, however a short sale can help stop the bleeding. A successful short sale will obviously stop the lates being reported on that mortgage and the credit report should reflect that the loan has been satisfied.

3

But even though the Mortgage has been satisfied (which is better than a Foreclosure) doesn’t the credit report reflect that it was satified with a smaller amount than original Mortgage in some cases?
Short Sale discount price would/could be les than actual Monies owed.
Please advise as I am a Noober

4

The credit report may state that a short sale was performed, but the amount of information being reported varies between mortgage companies. Either way, I think this shows the homeowner being proactive in solving the problem.