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Foreclosure Vs. Short Sale

Foreclosure Vs. Short Sale

Did you know that many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have in most cases will challenge employment.

A Short Sale is not reported on a credit report and is therefore not a challenge to employment.

As Certified Distressed Property Experts we deal with banks, loan servicer's and asset managers who contact us on a daily basis to help determine the value of their assets. You can be sure that you've selected a firm with previous experience and expertise of local market trends. For more market trends visit www.BaltimoreMarketTrends.com. Call the REALTOR® the banks call to sell their homes. Contact Aaron Rice today 443-244-0051.Do you want to know what your home is worth in today's Shifted market?

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If you, your family or friends are looking for refinancing strategies, tips for a quick sale or information on purchasing a home, I invite you to call me for valuable information on today's ever changing real estate market.

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Sellers are advised to obtain legal advice regarding the advisability and terms of any short sale agreement with creditor(s) and professional tax advice regarding the tax implications of any such sale.

This process will result in the loss of your home.

Aaron Rice, CDPE, CRS, GRI, SHS

Baltimore Home Team

Keller Williams Realty

3301 Boston St. Suite 200

Baltimore, MD 21224

443-244-0051 Cell

aaron@baltimorehometeam.com

www.BaltimoreShortSaleTeam.com

Posted by Aaron Rice, CDPE on 11/21/2008 08:17 AM

Comments (6)

Short Sale in the ActiveRain Channel

baltimore distressed property expert

This post has been included in Maryland Information Baltimore County, MD Information

6 Comments on Foreclosure Vs. Short Sale

NOV

2008

Good info! I guess I figured the short sale would also hurt your credit just as a foreclosure. Thanks for sharing!

Unfortunately, we are going to see many more of both.

Dean

Short sales may be reported on the credit report. It depends on the lender, the amount and whether the seller takes on a note for the shortage or a combination of the above. We never give a blanket statement such as that to our sellers. It can be misleading.

I agree with Suzanne. If you fail to make payments and go into pre-foreclosure with the agreement of the bank or the attorneys for the bank that they will stave off the foreclosure in order to obtain a short sale (or if there is equity to stave off the foreclosure) - this is still a credit reporting event.

SHort sales will most likely go on credit since most banks will not take a short pay off until the borrower is behind on payments. I would like to know your source of information for making that claim as I believe you are in error.

Disclaimer: Sellers are advised to obtain legal advice regarding the advisability and terms of any short sale agreement with creditor(s) and professional tax advice regarding the tax implications of any such sale.

Future financial /credit consequences:

Typically a borrowers credit score will go down about a minimum of 50 to a maximum of 350 points or more. The range depends primarily on their initial credit score, credit history and how many other bill items on their reports they aren't paying. Typically the only items that show up on a credit report are missed payments from a short sale. They like anything else will drop off a borrowers credit report after 7 years and if the borrower is diligent and rebuild their score in as little as 18months but is typically takes 2 years. Source: www.CDPEnow.com & The Distressed Property Institute.

Late payments leading up to a Short Sale will negatively impact credit however if the borrowers bank accepts a Short Sale and does not negatively report, the short sale will not in itself negatively impact your credit score. For sellers, the key advantage to selling in a short sale is avoiding foreclosure. A short sale does less damage to a person's credit report than a foreclosure. It's also less detrimental than a "deed in leu" (of foreclosure), in which a borrower gives then lender back the keys to the house and stops paying the loan. Source: www.ShortSalePlan.com

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