Your SlideShare is downloading. ×
Short Sale vs. Foreclosure
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Short Sale vs. Foreclosure

258

Published on

Published in: Real Estate
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
258
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. M aking the Right Choice for a Stable FuturePrepared Exclusively for Vivian MorffiHome Seller Keller Williams Realty 50 B Route 9 North Marlboro, NJ 07751 732-536-9010 x163 www.MonmouthDistressedPropertyExpert.com
  • 2. Prepared Exclusively for Vivian Morffi Home Seller Keller Williams Realty 50 B Route 9 North Marlboro, NJ 07751 732-536-9010 x163 www.MonmouthDistressedPropertyExpert.com employees on a recurring basis. Having a Short Sale foreclosure on your credit report may affect your vs. Foreclosure ability to gain employment and may even affect your ability to keep your current job in “at will” employment states.Making the Right Choice for a Stable Future In “at will” states, an employer can fire anMillions of Americans have lost their homes to employee for any reason not protected by anti-foreclosure during the housing market crash. discrimination laws or US Bankruptcy Code 525,There is also a growing trend of distressed which forbids an employer from discriminatinghomeowners that have sold their home through against an employee who has filed fora lender-approved short sale for less than the bankruptcy. In these states, an employer canbalance owed. terminate employment based on informationLenders often prefer a short sale to a foreclosure found in a credit report.because it saves them money. While lenders If you are in the military or in another positionmay lose less in a short sale than a foreclosure, that requires you to have security clearance,how does the distressed homeowner fare? a foreclosure may also have an adverse affectThere is much discussion in the media about on your employment. If this describes yourwhether a short sale or a foreclosure is a situation, a short sale or other foreclosurebetter choice. This report will compare the alternative should be considered.two scenarios so homeowners can make aneducated decision about how to proceed when Effects on Ability to Buy a Homefaced with this challenging situation. in the Future One of the biggest benefits of a short sale over aEffects on Your Credit foreclosure is your ability to obtain a mortgageAccording to FICO, short sales have the same more quickly after the transaction is completed.effect on your credit rating as a foreclosure, For every institution that backs a mortgage loan,lowering your score 75 to 160 points. If you have the waiting period after a negative credit event isa higher credit rating before entering into a short significantly shorter after a short sale, as shownsale or foreclosure, the drop in score will be in the Waiting Period chart below.more significant, as indicated by the Short Salevs Foreclosure chart issued by the FICO BankingAnalytics Blog. The flaw in FICO’s research is Waiting Waitingthat they are applying theory to an event that Loan Type Period After Period Afteris happening to millions of households across Short Sale Foreclosurethe nation. The reality is that, compared to the FHA Immediately* 3 Yearsrating of borrowers who have foreclosure ontheir reports, those that have chosen short sales Fannie Mae 2 Years* 7 Yearsconsistently experience a lesser impact on their Freddie Mac 4 Years* 7 Yearscredit scores. VA 1 Year* 1 Year*Effects on Current and Future Employment USDA 3 Years 3 YearsNow more than ever, employers are checking *certain requirements must be meta potential employee’s credit report beforehiring. Some even pull credit reports on existing Disclaimer© 2011 Distressed Property Institute, LLC All Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legaladvice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.
  • 3. Prepared Exclusively for Vivian MorffiHome Seller Keller Williams Realty 50 B Route 9 North Marlboro, NJ 07751 732-536-9010 x163 www.MonmouthDistressedPropertyExpert.comMost distressed homeowners are experiencing Being able to purchase a new home as soontemporary financial reversals, and the flexibility as your financial stability is restored is also ato reenter homeownership when they are ready key benefit of short sales. Even if you chooseis seen as a huge advantage of a short sale. never to own a home again, knowing that you have the opportunity to negotiate the deficiencyDeficiency Judgment judgment is also a benefit that should not beThe deficiency judgment is the amount owed overlooked.to the bank after a short sale or foreclosure. In Give me a call today for more information aboutdeficiency judgment states, the borrower may short sales and other alternatives to foreclosure.be liable for the amount owed to the lender until I can help guide you through the processit is paid in full. and put you back on the path to financial andIn the event of a short sale, the homeowner has emotional stability.the right to negotiate or have the deficiencyjudgment completely waived. In a foreclosure,the homeowner does not have the opportunityto negotiate the deficiency, and will always be Place Your confidence in cdPeliable for this debt, often numbering in the 10s of With the right assistance, the stress ofthousands of dollars or more. facing foreclosure becomes manageable.Psychological Effects CDPE-designated agents have receivedMany distressed homeowners find that short the knowledge and training necessary tosales give them more control and enable them assess all possible foreclosure alternativesto stay in their homes while the home is for sale. and pursue homeowners’ best options. AThey can avoid the stigma of foreclosure and be CDPE-designated agent attends severalan active participant in the process of workingout a deal with the lender. days of intensive, thorough training on foreclosure avoidance and how toIn a foreclosure, the lender orders thehomeowners to leave on a certain date. negotiate short sales efficiently andThe event is also made public and is often ethically. The highly regarded CDPE logoan embarrassment to the homeowners and means you are working with the mostespecially hard on children who don’t fully informed, up-to-date resource available.understand why they have to leave their homes.Weighing Your OptionsAlthough a short sale and a foreclosure mayhave similar implications to your credit, it isclear that for most distressed homeowners, ashort sale has many benefits that lessen theblow of an already challenging situation. It is alsoan honorable, cooperative way to work with thebank to lessen its loss while alleviating the burdenof paying a mortgage you can no longer afford.Disclaimer© 2011 Distressed Property Institute, LLC All Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice.It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer).If you reject the offer, you wil not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender.Even if you accept this offer and use our service, your lender may not agree to change your loan.

×