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FORECLOSURE VS. SHORT SALE: PROS AND CONS IN A SIMPLE CHART.......

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FORECLOSURE CONSEQUENCES FOR THE FOLLOWING

SECURITY CLEARANCES= may be revoked and position may be terminated
CURRENT EMPLOYMENT= may result in reassignment or termination
FUTURE EMPLOYMENT= in most cases will challenge employment
DEFICIENCY JUDGMENT= 100% of the bank in states where they can may pursuer a deficiency
DEFICIENCY JUDGMENT (amount)= If sold at auction at a low price may result in a higher deficiency judgment
FUTURE FANNIE MAE LOAN-PRIMARY RESIDENCE= 5 years to get a FM loan
FUTURE FANNIE MAE LOAN-NON PRIMARY= 7 years to get a FM loan
FUTURE LOAN WITH ANY MORTGAGE COMPANY= Buyer has to answer YES on question C Section VII of the standard 1003
CREDIT SCORE= lower credit score of 250 to 300 for 3 years
CREDIT HISTORY= 10 years on public record

SHORT SALE

SECURITY CLEARANCES= Will not challenge most security clearances
CURRENT EMPLOYMENT= Not a challenge to employment
FUTURE EMPLOYMENT= Not a challenge to employment
DEFICIENCY JUDGMENT= some successful short sales it it possible to convince the lender to give up right to pursuit
DEFICIENCY JUDGMENT (amount)= In most case the amount is lower
FUTURE FANNIE MAE LOAN-PRIMARY RESIDENCE= 2 Years for FM
FUTURE FANNIE MAE LOAN-NON PRIMARY= 2 Years for FM
FUTURE LOAN WITH ANY MORTGAGE COMPANY= No question about Short Sales
CREDIT SCORE= 50 points and 12 to 18 months
CREDIT HISTORY= Not reported on a credit history

I hope this helps you talk to your customers about Foreclosure VS. Short Sale

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