HOMEOWNERS CONSEQUENSES: – Foreclosure VS Short Sale

For Example:

Future Fannie Mae Loan – Primary Residence:

A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage only after 2 years.

Future Fannie Mae Loan – Non Primary Residence:

An Investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years. An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

Future Loan with any Mortgage Company:

On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” this will affect future rates. There are no similar declarations or question regarding a short sale.

Credit Score:

Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years. Only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale’s affect can be a brief as 12 to 18 months.

Credit History:

Foreclosure will remain as a public record on a person’s credit history for 10 years or more. A Short sale is not reported on a credit history. There is no specific reporting item for ‘short sale’. The loan is typically reported ‘paid in full, settled’.

Security Clearances:

Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated. A Short Sale on it’s own does not challenge most security clearances.

Current Employment:

Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination. A short sale is not reported on a credit report and is therefore not a challenge to employment.

Future Employment:

Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment. A short sale is not reported on a credit report and is therefore not a challenge to employment.

Deficiency Judgement:

In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment. In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.

kindly pass this on to a friend.

SERVICE AREA (NORTHERN CALIFORNIA) EL DORADO COUNTY, PLACER COUNTY. El Dorado County, Garden Valley (95633), Rescue (95672), Shingle Springs / Cameron Park (95682), Coloma (95613), Placerville (95667,) El Dorado Hills (95762), Cool (95614), Pilot Hill (95664), El Dorado (95623), Diamond Springs (95619), Lotus (95651), Placer County, Penryn (95663), Rocklin (95677), Granite Bay (95746), Roseville (95661), Lincoln (95645) Roseville (95747), Lincoln (95648), Roseville (95678), Loomis (95650), Newcastle (95658). Sacramento County, Carmichael (95608), North Sacramento Natomas Del Paso Heights (95838), Sacramento Elder Creek Fruitridge (95820), Citrus Heights (95621), North Sacramento Natomas Del Paso Heights (95833), Sacramento Elder Creek Fruitridge (95824), Sacramento Downtown Midtown (95816), North Sacramento Natomas Del Paso Heights (95835), Sacramento Florin & Vicinity (95829), North Sacramento Natomas Del Paso Heights (95834), North Sacramento Natomas Del Paso Heights (95836), Sacramento Florin & Vicinity (95830), East Sacramento & Vicinity (95817), Orangevale (95662), SACRAMENTO COUNTY Sacramento Florin & Vicinity (95828), East Sacramento & Vicinity (95819), Ranch Cordova Gold River (95670), Sacramento Foothill Farms (95842), Elk Grove (95758), Rancho Cordova (95742), Sacramento Franklin Freeport Vicinity (95823), Elk Grove (95757), Rancho Murieta (95683), Sacramento Franklin Freeport Vicinity (95832), Elk Grove (95624), Represa (95671), Sacramento International Airport & Vicinity (95837), Elverta (95626), Rio Linda (95673), Sacramento Land Park Curtis Park (95818), Fair Oaks (95628), North Highlands& Vicinity (95660), Sacramento Rosemont College Greens Mayhew (95827), Folsom & Vicinity (95630), Sacramento Antelope (95843), Sacramento Rosemont College Greens Mayhew (95826), Galt (95632), Sacramento Arden Arcade Creek Vicinity (95821), Sacramento So Land Park Greenhaven (95831), Herald (95638), Sacramento Arden Arcade Creek Vicinity (95841), Sacramento South Land Park Greenhaven (95822), Sacramento Downtown Midtown (95814), Sacramento Arden Arcade Creek Vicinity (95864), Sacramento Arden-Arcade Creek Vicinity (95815), Mather (95655), Sacramento Arden Arcade Creek Vicinity (95825), Wilton (95693). Jill Berni – Celebrating 30 Years of Customer Service BROKER/OWNER WWW.GOTOOAKTREE.COM Home & Loan * 24Hr Recorded message gives details: 866 866-6662 x5555

JILL BERNI Sacramento California Real Estate Liustings

OakTree Real Estate Services El Dorado Hills California

Advertisement