Military Short Sales And Effect On Credit Score (Virginia Beach Real Estate)
My recent article on “Why Military Homeowners PCS’ing Should Short Sale Their Home” has resulted in many inquires from Virginia Beach and Hampton Roads Military personnel.
Most military homeowners worry how the short sale will effect their credit or security clearance. The security clearance is far the most important item, but if your credit is good with no history of derogatory payments you should be just fine (check with your chain of command regarding financial issues and impact on security clearance).
Most all stories from Virginia Beach and Hampton Roads military families are pretty much the same:
1. Transferred and renting out their home in the Virginia Beach/Hampton Roads area for less than the mortgage payment resulting in financial strain at the new PCS duty station. Dealing with property management from far away and the potential cost of repairs so the home remains in decent condition.
2. The spouse and children staying behind while the military member transfers because they cannot sell the home due to being so far “underwater”.
3. Always current on their mortgage payment and receiving no sympathy from bank or lender about refinancing or mortgage adjustments.
The biggest issue from military homeowners repeatedly has been what will my credit score do? The good news is if you are current on your mortgage and have no “lates or missed payments” you should see relatively minor change in your credit score. In fact, some Virginia Beach and Hampton Roads military personnel have been able to short sale their current residence and turn around within months and purchase a new home.
My thoughts: Don’t get caught up with the credit score issue. Getting rid of the debt with NO Pursuit of Deficiency is far more important for peace of mind, your family, and getting on with your life. You already give much for your country so take advantage of this once in a lifetime opportunity.
The short term short sale pain, if much at all, is a no brainer. Contact Dennis Blackmore for more information and getting started.
Dennis Blackmore is an Experienced REALTOR(R) and Retired Naval Officer specializing in helping the military with real estate buying, selling, and relocation.