What are the Benefits of a Short Sale?

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When I discuss with my clients about almost all decision making processes, I recommend making a list: Pros & Cons Do’s & Don’ts Advantages or Disadvantages This I find is a good way to evaluate things.

I helped a lot of people get mortgages My Point is: I know how Banks, Underwriters qualify these loans. So let’s do that with a Short Sale vs Foreclosure. Here are the issues: Can I get a Fannie Mae Loan in the future? On the Short Sale Column: Current Fannie Mae Guidelines allow you to purchase another house after 2 years. Foreclosure column: The current guidelines require you to wait 5 -7 years before getting a loan. Can I get a future loan from any mortgage company? Short Sale column: You can state NO because you short sold your home. You only have to say yes if the bank completes the foreclosure. Foreclosure column: Any future application will require you to answer the question, “Have you had property foreclosure upon or given title or deed in lieu in the last 7 years? You’ll have to answer that question Yes. Short Sale column: Only late payments show up after a short sale the mortgage is normally reported as “paid in full” settled satisfied.” This lowers your score as little as 50 points if all other payments are being made. Often times this is off your credit report in as little as 12 months. Foreclosure column: Your score is typically lowered by 350 to 400 points or even more, this often stays on your credit score for over 3 years. And Lenders look back more than 7 years when qualifying you for a loan.

Will I owe the bank any money for the short fall, the deficiency? Short Sale column: Few lenders ask for a promissory note on a short sale. When they do ask for one. They request the borrower repay them a percentage of their loss. As an example, on one property we sold, the bank lost over $120,000 they settled with the seller for $25, ooo, to be repaid over 15 years with zero interest. The seller’s monthly payment was only $138.89 My experience has been that normally the banks will not ask for a promissory note or deficiency judgment unless they find discrepancies in your documents. You have tried to hire something, some income or assets. Foreclosure column: many lenders take 12 — 18 months to foreclose upon a property and resell it. This dramatically increases the loss and makes any deficiency judgment potentially bigger. Itemize your columns and what is your decision.

Watch my video on this   https://youtu.be/qPE4CFGRSYk

What are the Benefits of a Short Sale

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About donnabishoprealtor@gmail.com

Awesome Service: I make dreams come true. I am a Real Estate Consultant. I place great value on the needs, expectations and goals of all my clients whether buying or selling. By helping they find their perfect solution. I will truly listen to you. I have 33+ years experience in all phases of real estate. I am a Loan Modification Specialist, a Short Sale Expert, and a Successful Negotiator. A certified Senior Real Estate Specialist. Former Owner/Broker of A & B Mortgage Brokers of Fl. Plus a former Appraiser. A Professional Realtor. This experience and knowledge gives me the confidence to advise you correctly. I want you to have an Awesome Experience so you will recommend me to all the people you care about. After all, a referral is sending someone you care about to someone you respect.

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