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Short Sale vs Foreclosure Ty Leon Guerrero of Team1Realty
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Short Sale vs Foreclosure Ty Leon Guerrero of Team1Realty

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Short Sale vs Foreclosure - Team1Realty. Team1realty.com is your Home and Land Specialist. Search all MLS real estate homes for sale in Solano County, Napa County, Contra Costa County, Sonoma County, …

Short Sale vs Foreclosure - Team1Realty. Team1realty.com is your Home and Land Specialist. Search all MLS real estate homes for sale in Solano County, Napa County, Contra Costa County, Sonoma County, Sacramento County plus foreclosures, condos and short sale listings, stop foreclosure, avoid foreclosure, short sale help.

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  • 1. Short Sale Vs. Foreclosure Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 2. Issue 1 Future Fannie Mae Loan- Primary Residence 1Foreclosure Successful Short SaleA homeowner who loses a home A homeowner who successfullyto foreclosure is ineligible for a negotiates and closes a short sale willFannie Mae-backed mortgage be eligible for a Fannie Mae- backedfor a period of 5years. mortgage after only 2 years. Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 3. Issue 2 Future Fannie Mae Loan- Non-Primary2Foreclosure Successful Short SaleAn investor who allows a There is no similar declaration orproperty to go to foreclosure is question regarding a short sale.ineligible for a FannieMae-backed investmentmortgage for a period of 7 years. Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 4. Issue 3 Credit ScoreForeclosure Successful Short Sale• Score may be lowered • Only late payments on a mortgage anywhere from 250 to more will show, and after sale, mortgage than 300 points. is normally reported as paid as• Typically will affect a credit agreed, paid as negotiated, or score for over 3 years. settled. • This can lower the score as little as 50 points if all of the other payments are being made. • A shore sales effect can be as brief as 12 to 18 months. Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 5. Issue 4 Credit HistoryForeclosure Successful Short SaleForeclosure will remain as a • A short sale is not reported on apublic record permanently, and credit history.on a persons credit history for • There is no specific reporting item10 years or more. for short sale. • The loan is typically reported paid in full, settled. Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 6. Issue 5 Security ClearanceForeclosure Successful Short Sale• Foreclosure is the most On its own, a short sale does not challenging issue against a challenge most security clearances. security clearance outside a serious misdemeanor or felony conviction.• If a client has a foreclosure and is a police officer, in the military, in the CIA, security, or any other position that requires a security clearance, in almost all cases clearance will be revoked and position will be terminated. Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 7. Issue 6 Current EmploymentForeclosure Successful Short Sale• Employers have the right and A short sale is not reported on a are actively checking the credit report and therefore not a credit of all employees who challenge to employment. are in sensitive positions.• In many cases, a foreclosure is reason for immediate reassignment or termination. Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 8. Issue 7 Future EmploymentForeclosure Successful Short Sale• Many employers are requiring A short sale is not reported on a credit checks on all job credit report and is therefore not a applicants. challenge to future employment.• A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment. Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 9. Issue 8 Deficiency Judgment (Not Applicable in California)Foreclosure Successful Short SaleIn 100% of foreclosures (except In some successful short sales, it isin those states where there is possible to convince the lender tono deficiency), the bank has the give up the right to pursue aright to pursue a deficiency deficiency judgment against thejudgment. homeowner. Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 10. Issue 9 Deficiency Judgment (amount)Foreclosure Successful Short Sale• In a foreclosure, the home will In a properly managed short sale, the have to go through an REO home is sold at a price that should be process it does not sell at close to market value, and in almost auction. all cases will be better than an REO• In most cases this will result in sale resulting in a lower deficiency. a lower sales price and longer time to sale in a declining market.• This will result in a higher possible deficiency judgment. Ty Leon-Guerrero www.team1realty.com Call : 800-533-7107
  • 11. Contact Ty Leon-Guerrero Twitter Facebook LinkedIn Alameda, Contra Costa, Sonoma, Solano, Napa Counties Fairfield, CA 94533 Call Us : 800-533-7107 www.team1realty.com