Homeowners who are facing problems with their mortgage payments decide to short sell their home to avoid facing foreclosure and its process.  Even if you avoid the process of foreclosure, doing a short sale can also affect the rating of your credit.

Although the credit rating for a foreclosure will decrease by 200 to 300 points, a short sale will also damage your credit score by 75 to 125 points.  It will also take tree years to qualify for another home loan compared to a short sale that will help you get a loan in about a year and a half.

The…

For those who are seeking relief from upside down mortgage situation, short refinancing can be the most practical option. A short finance is similar to traditional mortgage refinancing. A new loan with better terms which may include reduced loan payments, lower interest rate or switching from an adjustable interest rate to a fixed interest rate.

However, keep in mind that short pay refinancing requires negotiation with your current lender. Once the lender agrees to a principal reduction on your mortgage, equity loss is removed, allowing you to qualify for a fixed FHA loan refinance. Ultimately, short refinance negotiation can repair an…

Your credit score is very important to purchase a home through mortgage. If you have a poor score or if you are trying to increase it, suggested below are some things you can do to boost up your credit score.

1. Pay down your credit cards. While it could help your credit score by paying your installment loans, it will not give a huge impact on your score compared to paying off or paying down all your credit card accounts.
2. Do not use up all your credit line in a month. Even if you are able to pay your balance in…

Almost 4, 000 borrowers will feel anxiety-free because Citigroup Inc. will suspend foreclosures and evictions for 30 days, thus, giving way to the holiday season.

The suspension will run from Dec 18 through Jan 17 as stated by the New York –based bank on Thursday. It applies only to borrowers whose loans are owned by Citi. For those who make payments to Citi but whose loans are owned by other investors are out of luck.

Sanjiv Das, head of the company’s mortgage division, said “We want our borrowers to have a much less stressful time, to spend their time with their families…