Homeowners need information in order to make a decision in their lives. One question that is always asked is what are the effects of a foreclosure compared to a short sale. This maaterial was provided by the Distressed Property Institute, LLC
Foreclosure
A homeowner who loses a home to Foreclsoure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. (effective May 21, 2008)
Credit scores may be lowered anywhere from 250 to over 300 points. Typically will affect score for oveer 3 years.
Short Sale
A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage only after 2 years.
Only late payments on a 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. A short sale's effect can be as brief as 12-18 months.
Please contact me for a copy of the full report if you are interested in learning more about a Foreclosure or Short Sales and how it will impact your Current emplyment, future emplyment, or credit histroy. I can be reached via email at elisa@rockridgedigs.com. Please include the following in the subject line: Foreclosure vs Short Sale