Foreclosure VS. Short Sale and Homeowner Consequences
There is a great deal of confusion among Stockton and Lodi home owners that are buried in their mortgages and are seeking relief. This posting should clear up some of the misconceptions regarding Foreclosures vs. short Sales and their effect on their credit and the ability to obtain a mortgage loan in the future. We have already completed several sales of home buyers that had previously completed a short sale.
· A home owner that loses a home through foreclosure is ineligible for a Fannie Mae backed mortgage for 5 years. A home owner completing a successful short sale is eligible after 2 years.
· An investor that loses a home through foreclosure is ineligible for a Fannie Mae backed mortgage for 5 years. An investor completing a successful short sale is eligible after 2 years.
· Credit scores can be lowered from 250 to more than 300 points with a foreclosure.
· With a successful short Sale only late payments will show and after the sale the mortgage is normally reported as paid as agreed, paid as negotiated an can lower the FICO score as little as 50 points. The effect of short sale can be as brief as 12 to 18 months.
· Foreclosure will be reported on a person’s credit history for 10 years. A short sale is not reported on a credit history; the loan is typically reported as paid in full or settled.
· For those that need security clearances for employment a foreclosure can bar them from employment or they may face termination or reassignment. Short Sales do not have the same effect.
· Many employers require credit checks for future employment and foreclosures have a definite effect on their decision. Short Sales are not reported on a credit report and will not harm your chances for future employment.
· Mortgage lenders have the right to pursue deficiency judgments (except in states where there is no deficiency) those who have refinanced are particularly vulnerable to deficiency judgments.
· Negotiated Short Sales are often completed with the lender giving up the right to pursue a deficiency judgment.
The best course of action in most cases is to avoid foreclosure and choose a Short Sale. Call the short sale team at the Lilly Team at PMZ Real Estate for a no obligation consultation at 209-479-9222 or e-mail us for you short sale package at thelillyteam@comcast.net . Visit us at www.hughlilly.com .
Stockton Neighborhoods: Brookside, Lincoln Village, Morada, Morada Ranch, Beck Ranch Spanos Park, West Spanos Park, Weston Ranch, Port of Stockton, UOP.
Stockton and Lodi Zip codes: 95208, 05204, 95205, 95206, 95207, 92209, 95210, 95212, 95215, 95219, 95242. 95240
Real Estate Multiple Listings: Bank owned homes, Stockton and Lodi Foreclosures and REO’s, Homes in Stockton, Homes in Lodi, Stockton California Listings, Stockton MLS Listings, Lodi MLS Listings, Ca Real Estate, Home Buyers, Stockton Homes for Sale, Lodi Homes for Sale, Stockton Short Sales, Brookside homes for sale, Spanos park home for sale, West Spanos Parke Homes for sale, Old Morada, Golf Course homes, Luxury homes, waterfront homes, Country homes Lodi Short Sales, Short Sale Specialist.