Short Sales and Credit

I've been working with a buyer lately in an area that includes many short sales.
These homeowners who have their homes sold in a short sale, where the lender agrees that the owner can sell the home for less than is owed on the mortgage, are advised to review their credit report as soon as possible for accuracy. If they have sold their home via a short sale, they should ensure that the account reflects a zero balance rather than the difference between the outstanding balance and the sales price. Also, consumers should not assume that a short sale carries no further obligations. Some lenders are filing deficiency judgments, while others are selling the debts to investors who then contact borrowers for repayment.
Staying current on credit card payments, applying for secured credit cards, and taking out and paying on small loans can all help to reestablish damaged credit.