Consider a short sale when foreclosure seems inevitable...
A short sale is a popular option for homeowners mired down with financial problems. In this case, you would sell your home for less than what you owe your lender; the biggest problem you will face is getting your lender to agree to a short sale. Experts advise pursuing this option the minute you realize that you are falling behind in your payments and most likely won’t be able to catch up. The longer you wait and the greater the amount you are in arrears, the less likely it becomes that your lender will even be willing to discuss a short sale.
Pay You To Do A Short Sale
$3,000.00 Seller Incentive Under U.S. Treasury HAFA Program
Many homeowners may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives (HAFA) Program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale. With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortgage debt they owe.
Under the program, a homeowner can receive $3,000 to help with relocation costs. Mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program.
HAFA allows borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed). *Junior lien holders accepting a HAFA incentive must also release borrowers from future liability.
Almost any option is better than foreclosure...
Simply stated, do everything you can before for.eclosure occurs and do it as quickly as humanly possible. Don’t sit back and keep thinking, what can I do? Instead, consider that short sale before your options become more limited.
Foreclosure vs. Short Sale
Buying Again After a Short Sale...
If your payments are in arrears yet a short sale is granted by your lender, you may qualify to buy another home with a Fannie-Mae backed mortgage within two years, regardless of whether the home is your primary residence.
Buying Again After a Foreclosure…
With certain restrictions, you may be eligible to buy another home in 5 years if the home was your primary residence. Without restrictions, the wait is 7 years. If you are an investor and do not occupy the home, the wait to buy with a Fannie Mae insured loan is 7 years.
Affects on Credit After a Short Sale…
A short sale is not a derogatory mark on your credit because credit bureaus do not show the word "short sale" on your credit report. It may say "pay as agreed" or "paid as less than agreed," Some clients have reported negative FICO score drops from 50 points to 130 points.
Affects on Credit After a Foreclosure…
A number of sources have reported FICO score drops from 200 to 400 points after a foreclosure. Generally this credit score will remain on your credit report as a public record for 10 years.
Credit Reports After a Short Sale…
All lenders report short sales differently and some do not report them to the credit bureaus at all.
Credit Reports After a Foreclosure…
If a prospective employer runs a credit check on you, your job application may be denied if you have a foreclosure on your record.
If you are faced with foreclosure and would like to discuss your options call me today. Time becomes a serious factor… In order to get your lenders attention to the short sale we must present your case with a valid offer to purchase your home. Although getting the home listed for sale is a fairy easy process, getting a buyer to make a valid offer and getting the offer submitted to your lender for review can prove very time consuming and may extend the process beyond the foreclosure date. Act now….
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