A short sale is when the lender agrees for the property to be sold at a price lower than the mortgage balance owed.
The Homeowner/Seller incurs no out of pocket expenses on a short sale.
The Homeowner/Seller can avoid having a “foreclosure” on their credit report.
The Homeowner/Seller is in control of the sale, not the bank as in a foreclosure. It’s is less stressful knowing who is buying your home.
The Home Affordable Foreclosure Alternatives Program, HAFA, is part of the Making Home Affordable campaign from the government. It is designed to streamline the short sale process and offer incentives to both the homeowner and lender to pursue foreclosure alternatives. You may be eligible for $3,000 in borrower relocation assistance from the HAFA Program to complete a short sale.
Fannie Mae, a government supported enterprise, backs a large percentage of U.S. Mortgage loans, and your lender or I can find out if this is the case for your situation. After a short sale, you will be eligible for a Fannie Mae-backed loan in just two years (loan to value ratios apply), as opposed to five years after a foreclosure.
Upon a successful completion of a short sale, the lender may give up the right to pursue a deficiency judgment against you. If the lender does pursue a deficiency judgment against you after a successful short sale, the deficiency amount will be considerably lower, because it was sold at a price closer to the current market value, than that of a foreclosed property (Bank Owned) sale.
The Homeowner/Seller can avoid having a “foreclosure” on their credit report and is therefore not a challenge to employment.
The term “short sale” does not actually appear in a credit report. So, the important concept to understand before you agree to your to your lenders terms is how the mortgage loan will be closed and reported in your credit history. In the vast majority of instances, the short sale is reported as “satisfied for less than amount owed”.
There are some advantages to a short sale over a foreclosure. You can start the long road to credit recover sooner because foreclosures usually take much longer than short sales. After a short sale, you can qualify for another mortgage faster. Lenders typically will consider you for a home loan two years after a short sale, versus a wait of up to seven years if you let your current lender foreclose.
Specifics of a Short Sale
A short sale is when the lender agrees for the property to be sold at a price lower than the mortgage balance owed.
The Homeowner/Seller incurs no out of pocket expenses on a short sale.
The Homeowner/Seller can avoid having a “foreclosure” on their credit report.
The Homeowner/Seller is in control of the sale, not the bank as in a foreclosure. It’s is less stressful knowing who is buying your home.
The Home Affordable Foreclosure Alternatives Program, HAFA, is part of the Making Home Affordable campaign from the government. It is designed to streamline the short sale process and offer incentives to both the homeowner and lender to pursue foreclosure alternatives. You may be eligible for $3,000 in borrower relocation assistance from the HAFA Program to complete a short sale.
Fannie Mae, a government supported enterprise, backs a large percentage of U.S. Mortgage loans, and your lender or I can find out if this is the case for your situation. After a short sale, you will be eligible for a Fannie Mae-backed loan in just two years (loan to value ratios apply), as opposed to five years after a foreclosure.
Upon a successful completion of a short sale, the lender may give up the right to pursue a deficiency judgment against you. If the lender does pursue a deficiency judgment against you after a successful short sale, the deficiency amount will be considerably lower, because it was sold at a price closer to the current market value, than that of a foreclosed property (Bank Owned) sale.
The Homeowner/Seller can avoid having a “foreclosure” on their credit report and is therefore not a challenge to employment.
The term “short sale” does not actually appear in a credit report. So, the important concept to understand before you agree to your to your lenders terms is how the mortgage loan will be closed and reported in your credit history. In the vast majority of instances, the short sale is reported as “satisfied for less than amount owed”.
There are some advantages to a short sale over a foreclosure. You can start the long road to credit recover sooner because foreclosures usually take much longer than short sales. After a short sale, you can qualify for another mortgage faster. Lenders typically will consider you for a home loan two years after a short sale, versus a wait of up to seven years if you let your current lender foreclose.