I Am A Certified Distressed Property Expert

If you, or someone you know, is affected by financial harships that could result in foreclosure, contact me today and I will work hard to help you.

You Do Qualify for a Short Sale if you are facing one or more of the following market hardships:

  • Job Loss
  • Mortgage Adjustment
  • Reduced Income
  • Illness
  • Divorce and Separation
  • Business Failure
  • Too Much Debt
  • Damage to Property
  • Death of the Wage Earner
  • Inheritance
  • Job Relocation
  • Military Service
  • Incarceration

I will work one on one with you and leverage my extensive knowledge of the distressed property market to ensure your real estate transaction is successful. I promise, you will receive the best professional solution to avoid foreclosure.

I encourage you to read the testimonials from my clients and contact me or call to get a free consultation.

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

Don't risk your financial future and the potential sale of your home with an agent who does not have all the solutions.

Short Sale vs. Foreclosure

ISSUE

FORECLOSURE

SUCCESSFUL SHORT SALE

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 up to 7 years with some exceptions based on extenuating circumstances. See: efanniemae.com

A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed mortgage within 2 years (see table below for LTV ratios).

Future Fannie Mae Loan

(Non Primary)

An investor who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period up to 7 years with some exceptions based on extenuating circumstances. See: efanniemae.com

An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed investment mortgage within 2 years (see table below for LTV ratios).

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 is no similar declaration or question regarding a short sale.

FHA – If current at the close of short sale, a homeowner may apply for an FHA loan immediately. If homeowner is late before close of short sale closing, will be eligible for FHA loan after 3 years.

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 is normally reported as "paid as agreed," "paid as negotiated," or "settled." This can lower the score as little as 50 points if all other payments are being made. A short sale’s effect can be as brief as 12 to 18 months.

Credit History

Foreclosure will remain as a public record on a person’s credit history for 7 years or more.

A short sale is not reported on a persons credit history. There is no specific reporting item for "short sale." In most cases a loan is typically reported "paid in full, settled" or "paid as negotiated."

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 or security officer, in the military, in the CIA, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.

On its own, a short sale 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 Judgment

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.

Deficiency Judgment

(amount)

In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.

In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.

Short Sale vs. Foreclosure Fannie Mae Waiting Period Table

Derogatory Event

Fannie Mae Waiting Period Requirements

Waiting Period with Extenuating Circumstances

Foreclosure

7 Years

 

 

3 Years

• Additional requirements after 3 years up to 7 years

• 90% maximum LTV ratios

• Purchase, principal residence

Short Sale

2 Years - 80% maximum LTV ratios

4 Years - 90% maximum LTV ratios

7 Years - LTV ratios per the Lender Eligibility Matrix

2 Years - 90% maximum LTV ratios

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