What Offers A Short Sale Benefit?
There are many reasons that a short sale benefit’s you more and is better for you. We put together the comparison below so you can see advantages of short sale and compare them for yourself.
Issue |
Foreclosure |
Short Sale |
| Can I get a Fannie Mae Loan in the Future? |
The current Fannie Mae Guidelines require you to wait 5-7 years before getting a new loan. | Current Fannie Mae Guidelines allow you to purchase another house after 2 years. |
| Can I get a future loan from any mortgage company? |
Any future application require you to answer the question, “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” you’ll have to answer that question with yes. | You can state No because you short sold your home. You only have to say yes if the bank completes the foreclosure. |
| Credit Score Impact | Your score is typically lowered by 250 to 300 points, or even more. This often stays on your credit score for over 3 years. | Only late payments show up. After a short sale, the mortgage is normally reported as “paid in full, settled.” This lowers your score as little as 50 points if all other payments are being made. Oftentimes, this is off your credit report in as little as 12 months. |
| Will I owe the bank any money for the shortfall? | 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. | 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 $25,000 to be repaid over 15 years with zero interest. The seller’s monthly payment was only $138.89. |
How do I get started on a short sale?
Contact us to get started today. We will discuss your situation with you and answer any questions you may have. You can call us at 1-800-648-0037 Ext. 1024 or send us an email to info@FloridaConnectsInc.com.
