Below we outlined some of the reason you may want to consider short selling your home vs letting go into foreclosure.
- A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed mortgage after only 2 years! Redding CA Short Sales make up over 30% of our current MLS inventory.
- The above also applies to an investor who successfully negotiates a short sale with his/her mortgage servicer.
- As to your credit score - only late payments on mortgage will show, and after sale, the mortgage is normally reported as 'paid as agreed', 'paid as negotiated', or 'settled'. This can lower the score as little as 50 points if all other payments are being made. A short sale's effect can be as brief as 12 to 18 months.
- 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'.
- A short sale is also not a challenge to employment.
- In most cases, the lender may give up the right to pursue a deficiency judgment against the homeowner.
- In a properly managed short sale, the home is sold at a price that should be close to market value, and in almost all cases will be better than an REO sale (or a foreclosure sale) resulting in a lower deficiency.
We're bringing this information to you so that you would understand not only what the ramifications of a foreclosure are but that there are options and hope! Contact us for a complimentary and private consultation.