Several years ago, borrowers who ended up in a short sale situation fared a bit better than those who let the bank take back the home in foreclosure. That's not true anymore, because short sales affect credit the same as a foreclosure. At least for the time being.
However, while up to June 25th, it used to be a five-year wait per Fannie Mae guidelines, the good news is Fannie Mae has changed its guidelines, so sellers can buy a new home in two years!!!
Agents who tell their sellers that a short sale will not ruin their credit or that their credit report will take a smaller hit are misinformed. I won't go so far as to say they are lying, they just don't know any better. As a real estate licensee, agents are supposed to know better and, they are not supposed to give legal advice.
But at least now agents have a real reason to say that a short sale is better. It's better because a short-sale seller can buy another home in two years, providing credit has not been further impaired during that 24-month period.
If you are considering the credit implications of a short sale, get professional advice from a real estate lawyer.
Read more about Will a Short Sale Ruin My Credit?
Photo: Big Stock Photo
Certified HAFA Specialist
Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available with free shipping.
Lyon Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.