Foreclosure:  On any future application, a prospective borrower will have to answer YES to question C in section VII of the standard 1003 form that asks, "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?"  This will affect future rates.

Short Sale:  There is no similar declaration or question regarding a short sale.

If possible, a short sale is a much better option than going into foreclosure.  Here is the second reason why. 

An Investor who allows a property to go to foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.

An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

Spending a little bit of time now with a qualified agent may save you years of waiting to re purchase a home later on.

Are you or is someone you know facing foreclosure? A Short Sale may be the answer. Did you know that:

A homeowner who loses a home due to foreclosure is ineligible for a Fannie Mae-backed mortgage for a period of 5 years. A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed mortgage after only 2 years.

If you or someone you know is in need of help please give us a call. We are CDPE certified and we may be able to help you avoid foreclosure.

We've all heard the term "Short Sale" thrown around a lot lately in casual conversation. Contrary to popular opinion, it's not a term for selling your home quickly. It's the process of getting your lender to agree to take less for your home than what you owe on it. Short Sales have become so prominent in this current economy because property values have fallen so severely and since we were coming off of very strong markets, many homeowners are finding themselves upside down in their current home.

The decision to sell your home "short" is difficult and can be overwhelming. If you are considering your options, be sure to consult an expert. A good real estate agent can walk you through the process, discuss your specific situation, and offer advice based on their experience in your area and with your lender. If you or someone you know may be considering a Short Sale, please call us today!