short sale credit: Why would I do a Short Sale instead of saving the monthly payments & letting it go?
- 02/27/11 08:13 AM
Sacramento CA - The Stop Foreclosure Institute recently received a question from Christy. "Why would I do a short sale instead of saving the monthly payments and letting it go into foreclosure?" Christy asked. Here is the answer. If you stop paying your mortgage, then you can live in your home rent free for 12-24 months, depending on the state you are located within. I have seen lenders wait a year after the first missed payment just to file for foreclosure. Yes, you can live in your house for free for a long time. However, a short sale has many advantages … (2 comments)
There have been many questions lately regarding short sales and waiting periods to buy another home. The rules have changed numerous times over the past year and there is a lot of confusion. The requirements for FHA and Fannie Mae are slightly different. For FHA the waiting period is 3 years from the short sale. A credit score of 640 is required.
For Fannie Mae, a 2 year waiting period is required with a 20% down payment. A 4 year waiting period is required with a 10% down payment and after 7 years a 5% down is allowed. … (1 comments)
Sacramento CA - The Stop Foreclosure Institute recently received a question from Christy. "Why would I do a short sale instead of saving the monthly payments and letting it go into foreclosure?" Christy asked.
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