I have gotten the impression from the many real estate agents are unaware that the effect of a Short Sale on their clients credit report isn't as bad as Foreclosure or Deed In Lieu of Foreclosure.
I have actually seen a lot to the contrary in advertising. It scares me because I see a lot of lawsuits in the future regarding this.
Short Sales, Deed in Lieu of Foreclosure, or full blown Foreclosure are all weighted the same in determining credit score computations. This information comes directly from MyFICO.com.
Earlier this year, FNMA announced that a record of foreclosure on a credit report will require that 3 years must pass prior to placing a borrower into a FNMA insured loan. At the beginning of June, that time frame was extended to five years. That is five years from the sale date. Remember, that the home owner does have redemption periods after default and because of this, the sale date is the actual date of the foreclosure. An owner wouldn't necessarily know this without researching the actual date.
The Mortgage Bankers Association announced that one in every 200 homes with mortgages is facing foreclosure. That is a lot of bad news to many families.
A year ago I correctly predicted that short-refis would exist. They do now.....it is called Loan Modification and I can help you with that.
Finding out that my agent said a short sale wouldn't hurt me as badly would have me gunning for someone to pay. I would rather it wouldn't be you.
Please call me at 619-701-4321 to see if I can help you to stay in your home. We can help in most states or know good, ethical professionals if we don't work in yours.
Thanks for reading.
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