Short Sale vs. Foreclosure
You are probably asking yourself... "Why should I sell my home as a Short Sale? Why not let the bank take it back as a Foreclosure?"
Here are just a few reasons to strongly consider a Short Sale....
1. Credit Score - Did you know that a foreclosure will
lower your credit score by 250 to over 300
points? A foreclosure will typically affect your credit
score for over 3 years.
If you choose to sell your home as a short sale, your
credit score can lower as little as 50 points if all
other payments are being made. A short sale's affect
on your credit can be as brief as 12 to 18 months.
2. Credit History - A foreclosure will remain as a
public record on a person's credit history for 10
years or more.
If you choose to sell your home as a short sale, a
short sale is not reported on a person's credit
history. There is no specific wording for short sale
on a credit report. It will typically be reported as
"paid in full, settled" or "paid as negotiated."
3. Future Home Purchase - A homeowner who loses a
home to foreclosure is not eligible to for a Fannie
Mae backed mortgage for 5 years.
If you choose to sell your home as a short sale, a
homeowner who successfully negotiates and closes a
short sale will be eligible for a Fannie Mae backed
loan after only 2 years.
Selling your home as a real estate short sale rather than a home foreclosure will result in less injury to your credit and allow you to obtain a future home mortgage more quickly.
Please contact Amy with your questions about short sale vs. foreclosure and learn what your options are.
All information on this page came from www.CDPE.com.
