Don't Foreclose! Short Sales Don't Show Up On Your Credit History

Mesa, AZ (PRWEB) September 8, 2010

Victor De Stefano, Associate Broker, with Keller Williams sold his first house when he was 18 yrs. old as a Realtor. Now, as an Associate Broker, he’s working to help families get out from underneath their home and avoid foreclosure. Find yourself dealing with the difficult times, behind on payments and a loan modification is not possible; learn about Short Sales. Ask yourself this, do you want to own your home again one day? The differences between a Foreclosure and a Short Sale are large enough for consideration. A short sale will give you the right start on owning a home again.

Victor and his team provide Arizona residents with short sale vs. foreclosure workshops; they are Certified Distressed Property Experts with over 100 years combined experience. The purpose of these free, no obligation events is to help educate residents on the impact of short sales & foreclosures on all of us. These workshops help explain the differences between short sales and foreclosures, the legal and tax ramifications of each, and how to avoid the scams. There is a brief question and answer session at the end with the Attorney and CPA. These events promise to be very informative and helpful. These workshops are for everyone, not just those in pre-foreclosure. Foreclosures in our neighborhoods affect everyone by reducing property values and adding an increased risk of vandalism and more. If you or someone you know is facing possible foreclosure you will be able to share with them the information from these workshops and maybe help them and the value of the neighborhood. To find out when & where the next workshop is held contact Victor for more information.

The short sale information below is just the tip of the iceberg that’s provided. Here are some differences between a short sale and foreclosure in different situations.

Future Fannie Mae Loan - Primary Residence

Foreclosure - A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.

Short Sale - A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.

Future Fannie Mae Loan - Non Primary

Foreclosure - 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.

Short Sale - An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

Future Loan with any Mortgage Company

Foreclosure - On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks 'Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" this will affect future rates.

Short Sale - There is no similar declaration or question regarding a short sale.

Credit Score

Foreclosure - Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years.

Short Sale - Only late payments on a mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale's affect can be a brief as 12 - 18 months.

Credit History

Foreclosure - Foreclosure will remain as a public record on a person's credit history for 10 years or more.

Short Sale - 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.'

Future Employment

Foreclosure - Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.

Short Sale - is not reported on a credit report and is therefore not a challenge to employment.

Security Clearances

Foreclosure - is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor of felony. 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.

Short Sale - A Short Sale on its own does not challenge most security clearances.

Victor and his team helps people short sale their home; before, during, and even after the transaction. Victor understands the difficulties. As Certified Distressed Property Experts they have full time coordinators that work with the lenders on your behalf throughout the process. When it seems many people just want to sell your home and forget about you, there’s hope! He built his business on helping people. In a short sale you incur none of the closing costs or commissions, the bank pays all of those fees & homes are typically sold as/is. Relocating Assistance is provided with a free moving truck with in Arizona and utility transfer assistance. The goal is to make this transition easy and stress free. This world class service does not just stop there. Victor also will provide the resources and contacts to guide you back on track with rebuilding your credit and back on the path to homeownership.

Questions and private consultations with Victor are always welcome.

Victor De Stefano
480-580-4150
http://www.BrokerVictor.com

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