Short Sale VS Foreclosure of Your Frederick Home
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Future Fannie Mae Loan – Primary Residence
(effective May 21, 2008) | 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 closes 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 years. | In some cases 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. In some states default can be reported as a foreclosures however the time a short sale instead of a foreclosure will affect a borrow is much less. A short sale’s affect can be a brief as 12 to 18 months. |
Contact Us for more information on Short Sales and Distressed Property information.
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The Highland Group
Chris & Karen Highland * 301-831-9947
Turning Point Real Estate – 301-831-8232
email us: isell4u2@msn.com
Text Us: 301-401-5119
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