How Will a Short Sale or Foreclosure Affect...
CREDIT SCORES
Short Sale
Credit Scores may be lowered as little as 50 points as long as all other payments have been made and will typically affect it for as long as 12 - 18 months. Mortgages will be reported as either Paid or Negotiated.
Foreclosure
I Credit Scores may be lowered anywhere from 250 to over 300 points and will typically be affected for over 3 years.
__________________________________________________________________________
CREDIT HISTORY
Short Sale
A short sale may appear on a person's credit history and is usually reported as Settled for Less than the Full Amount.
Foreclosure
Foreclosures will remain as public record on a person's credit history for 10 years or longer.
__________________________________________________________________________
BUYING ANOTHER HOME
Short Sale
A borrower on future mortgage applications will not be asked about a short sale and may be able to receive a reasonable interest rate in less than two years.
Foreclosure
A borrower on future mortgage applications will be asked if they have had their property foreclosed on within the last 7 years and will therefore affect their interest rates.
__________________________________________________________________________
FUTURE LOANS
Short Sale
An investor or homeowner who completes a successful short sale will be eligible for a Fannie Mae backed mortgage after 2 years or less.
Foreclosure
An investor or homeowner of a foreclosed property will be ineligible for a Fannie Mae backed mortgage for 7 years.
__________________________________________________________________________
EMPLOYMENT OPPORTUNITIES & SECURITY CLEARANCE
Short Sale
A short sale will not appear on a person's credit history and is usually reported as Settled for Less than the Full Amount and therefore should not challenge any employment opportunities or security clearances.
Foreclosure
A foreclosure on a person's credit report may be grounds for termination for some companies and could cancel a person's security clearance. A foreclosure on record may challenge future employment opportunities as well.
__________________________________________________________________________
DEFICIENCY JUDGMENTS
Short Sale
In California, purchase-money loans on a one- to four-unit residential dwelling are exempt from deficiency judgments. However, hard-money loans, such as a refinance or 2nd mortgage, may be subject to deficiency judgments.
Foreclosure
In California, purchase-money loans on a one- to four-unit residential dwelling are exempt from deficiency judgments. However, hard-money loans, such as a refinance or 2nd mortgage, may be subject to deficiency judgments.
__________________________________________________________________________
No comments:
Post a Comment