•· Top tier FICO risk based pricing may be increased from 740 to 760
•· A bankruptcy in the past 5 years may change to not having one in the past 6 years
•· A mortgage late in the past year may increase to not having one in the past 2 years
•· A foreclosure reporting may be increased from 5 to 6 years
•· A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage only after 2 years.
•· 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.
•· Score may be lowered anywhere from 250 to over 300 points. Typically this can affect score for over 3 years.
•· Typically only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated.
•· Foreclosure can remain as a public record on a person's credit history for 10 years or more.
•· A Short sale is not reported on a credit history. There is no specific reporting item for "short sale" The loan is typically reported "paid in full, settled, Profit and Loss, or Not paid as agreed."
Not only if your score is not high enough, if you fall in to any of the other categories you will not be able to qualify for a loan or refinance for a Fannie Mae or Freddie Mac loan. Credit repair and management can help rebound your credit score, thus helping consumes get back on their feet quicker, however if you are aware of your options with Deed in lieu or short sales, your customers will be able purchase a home again sooner.
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