Credit Benefits of a Short Sale

By
Real Estate Broker/Owner with Trish Nash Team - Signature Gallery Of Homes NRDS#: 629020388

A short sale will have a lesser impact on your ability to re-establish your credit history than a foreclsure or bankruptcy.  See below:

Here is a summary of Fannie Mae loan policies that went into affect on August 1, 2008.  This represents the time period that must elapse before borrowers can demonstrate they have reestablished an acceptable credit history after the occurrence of the bankruptcy or foreclosure. 

2 yrs - Preforeclosure Sale (aka Short Sale)

2 yrs - Bankruptcy Chpt 13 (reorganization) - case discharged (completed)

4 yrs - Bankruptcy Chpt 13 (reorganization) - case dismissed (not completed)

4 yrs - Bankruptcy - All others, not Chpt 13

4 yrs - Deed-in-Lieu of Foreclosure

            ADDITIONAL REQUIREMENTS up to 7 yrs after

                - The greater of 10% down payment or minimum down payment required

                - Limited cash-out refinances

5 yrs - Multiplbe Bankruptcy filings

5 yrs - Foreclosure

            ADDITIONAL REQUIREMENTS up to 7 yrs after

                - Min 10% down payment and credit score of 680           

                - No second homes or investment properties

                - Limited cash-out refinances, but only if eligibility requirements

close

Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Peter Testa 01/23/2009 05:17 PM
  2. Brandon Roberts 08/23/2009 11:18 AM
Topic:
Real Estate General Information
Location:
Nevada Clark County Henderson
Groups:
Short Sales Specialists
Short Sale REALTORS®

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Rainmaker
1,204,819
Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Trish, that is good information, thank you for putting it together!

Jan 23, 2009 05:43 PM #1
Rainmaker
83,622
Randall Sandin
Carolina One Real Estate - Charleston, SC
843-209-9667 - Search for Charleston SC Real Estate

great info - I will definitely print that up for my files

Jan 23, 2009 07:54 PM #2
Rainmaker
320,361
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049

Trish: great info -- where did you find the source for the info?

Jan 24, 2009 11:37 PM #3
Rainmaker
472,455
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Trish, this was very valuable. I am bookmarking it.

Jan 24, 2009 11:48 PM #4
Rainmaker
14,847
Trish Nash Team
Trish Nash Team - Signature Gallery Of Homes - Henderson, NV
Henderson Real Estate Broker, CRS, GRI, PMN

You are welcome!  YOu can get more detailed info at the Fannie Mae website.

 

Trish Nash

Jan 25, 2009 05:14 AM #5
Rainmaker
284,767
Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

Nice to see that the short sale really makes a difference for the seller.

Jan 25, 2009 08:06 AM #6
Rainer
4,395
Deborah Kendrick
First Florida Realty of Tamp Bay - Land O Lakes, FL

Thank You for your knownledge! I am doing Information gathering for a few banks and I get that question all the time. I knew doing a Short Sale was perferred over foreclosure but now I have some Guidelines! TY

Jan 31, 2009 01:57 PM #7
Rainmaker
14,847
Trish Nash Team
Trish Nash Team - Signature Gallery Of Homes - Henderson, NV
Henderson Real Estate Broker, CRS, GRI, PMN

Deborah,

     Since I have started doing short sales - my business has doubled.  It is a great service to clients and a great opportunity for spin-off business from sign calls!  I wish you the best.  Lwt me know if I can help at all!

Trish Nash

Feb 01, 2009 03:55 PM #8
Rainer
16,276
Freddie Gonzales
WEM PACIFIC Investments, Inc. - Daly City, CA
CRS, GRI, RDCPro

Nice information Trish. How is "Short Sale" business in Vegas. Are you not being affected by these attorneys coming out doing loan mod's and charging hefty fees and no guaranty.

Feb 10, 2009 05:40 PM #9
Rainmaker
41,595
Tracy Royce
Short Sale Arizona, Arizona Short Sale Realtor - Phoenix, AZ
Royce of Real Estate - Short Sale Arizona

Trish thanks for the post. We are doing more business than ever here in Phoenix (we buy in Vegas too), but almost 100% is from Short Sales, and it's so nice to be able to help the sellers in more than ways than one. In some cases the credit impact has been very little....so thanks for outlining the timeline!

Tracy Royce

www.livefreeinvestmentgroup.com

602-957-7773

Mar 06, 2009 04:34 AM #10
Rainer
1,529
Marcus Acosta
Pegasus InvestorsGroup LLC - Belmont, CA

Please view our short sale program and hopefully we can to business in the future. I look forward to hearing from you, thank you for your time

Short-Sale Program

Here is an example of how the process would layout. The realtor finds the property and gets the owner to agree to do a short sale, we are not looking for reo properties, or foreclosures, or bank owned. The owner needs to be behind on payments, usually 3 payments behind. We provide the paperwork that the realtor has the seller sign. The realtor does not have to do any short sale beyond this point; we submit the paperwork and get the bank to accept our offer. We buy the property, we provide the proof of funds and letter of intent, then property closes at Title Company, we now own the property, the realtor now lists the property on our behalf, generally the property will be listed under the retail price so that the property will sell fast. The realtor makes 3% on our purchase and if they are the selling agent, they make an additional 3%. We guarantee the realtor 6% commission. We are looking for homes over $500,000, anywhere in the United States.

Give us a clal or shoot us an email for more informaiton, or post on the blog!

Marcus Acosta

Pegasus INvestors Group LLC

May 29, 2009 06:36 AM #11
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Rainmaker
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Trish Nash Team

Henderson Real Estate Broker, CRS, GRI, PMN
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