| FORECLOSURE vs. SHORT SALE Do you know someone who is falling behind on their mortgage payments? Current economic conditions are causing unbearable stress and heartache for local families. Regardless of the reasons a large percentage of homeowners today are in financial distress due to the real estate market. Foreclosures negatively impact a homeowner's credit, future livelihood and disrupt families and their loved ones. Foreclosures negatively impact the property values. There may be options other than foreclosure or bankrupcy. Their options may include loan modification or a short sale. What is a Short Sale? A short sale is a negotiation in which the homeowner qualifies and the mortgage company or companies accept less than the full balance of the loan at closing. Benefits of a Short Sale: No additonal funds required at closing. Avoid foreclosure and many times a Judgement. Preserve their credit. Commissions and fees paid by lender.
The short sale is one of the most important aspects in today's market and has been referred to as the "brain surgery of real estate". CDPE's successfully close over 80% of short sales nationwide compared to less than 20% represented by a typical realtor. Homeowners who are experiencing or expecting financial problems need to act quickly. There may be options. To learn more about Homeowners Consequences and available options contact us ASAP. FHA Homeowners: HUD has implemented the Preforeclosure Sale (PFS) which may enable a distressed homeowner to attempt to sell their home for a price that may be less than owed to the lender. There are certain criteria and restrictions. Time Is Of The Essence ! Foreclosure vs. Short Sale Homeowner Consequences Foreclosure | Short Sale | | | Ineligible for Fannie Mae backed mortgage for 5 years. In the future, borrower will have to disclose foreclosure on loan applications. Credit score may be lowered 250 to over 300 points. Typically will affect score for over 3 years. | Eligible for Fannie Mae backed mortgage after only 2 years. There is no similar declaration or question regarding short sale. 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 as brief as 12 to 18 months. | Foreclosure will remain as a public record on a credit history for 10 years. | A short sale is not reported on a credit report. | | | Many employers require credit checks on job applicants. A foreclosure will show on your credit report. 5 Must Read Reports: Foreclosure vs. Short Sale Homeowner consequences. 3 Must have qualifications for a Short Sale Homeowner. Options and Solutions for Homeowner in Foreclosure. 7 Most dangerous Short Sale myths. 7 Most common Short Sale pitfalls. Click Here
| A short sale is not reported on a credit report, therefore not a challenge to employment. As a Certified Distress Property Expert and a Realtor, I have the expertise necessary to save your credit, relieve the uncertainty and most of all help your family. Ken D'Alessandro CDPE RE/MAX Central
630-539-4100ken@kendalessandro.com |
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Office 630-539-4100
