Avoid Foreclosure - Let Us Be Your Advocate
Payback Less Than You Owe On Your Home
The RE/MAX Short Sale Team
Confidential - Professional - Caring
Suzanne Foss Lynn Tannebaum Eddie Stocker
310-663-3375 310-713-5706 310-210-6266
In a Successful Short Sale...
Lender agrees to discount the loan balance
Limited Impact on your Credit
Start Over - Fannie Mae mortgage eligibility after 2 years
Banks & Home Owners prefer short sales over forclosure
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
The current U.S. housing market and financial crisis have caused tremendous stress and heartache for families across America. If you or someone you know is among the millions today affected by the prospect of foreclosure, understand that you are not alone.
Unfortunately, seven out of 10 homeowners in foreclosure proceed without the assistance or advice of real estate professionals. Now more than ever, you need to find an advocate for you and your family's interests, one who is prepared to handle your specific needs.
A Certified Distressed Property Expert® (CDPE) has trained extensively to understand the options, solutions, and effective methods for dealing with homeowners facing hardships. Don't risk your financial future and the potential sale of your home with an agent who does not have all the solutions.
Certified Distressed Property Experts fully understand that saving a home can save a life, which can save a family, which can save a future.
| Real Estate With Precision- Eddie Stocker - Realtor / CDPE - 310-210-6266 | ||
| Foreclosure vs. Short Sale | ||
| Homeowners Consequences | ||
| Issue | Foreclosure | Successful Short Sale |
|
Future Fannie Mae Loan (effective May 21, 2008) 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 doses a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years. |
|
Future Fannie Mae Loan
Non Primary (effective May 21, 2008) |
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 is no similar declaration 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 l 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. | Short sale is not reported ©n a credit history. There is no specific reporting item for 'short sale1. 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 its 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 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, |
| Eddie Stocker and The Distressed Property Institute, LLC assumes no responsibility nor guarantees the accuracy of this document. Eddie Stocker and the Distressed Property Institute, LLC is not engaged in the practice of Law nor give legal advice,. © Distressed Property Institute, LLC 2008. All rights reserved. Any duplication without express written consent is prohibited. | ||
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