Benefits of a Short Sale

Benefits of Short Selling vs. Foreclosure or Deed in Lieu

• Our goal is to release you from any deficiency judgments that can come along with foreclosure.
• Ability to purchase property immediately or within 2 years depending on mortgage lates.
• Preserve your credit: A foreclosure can affect your credit up to 400 points and can remain on your credit up to 10 years. A short sale will affect your credit from 50-130 points for 6 months to 2 years.
• Loan applications often ask if you have defaulted and/or foreclosed on property. With a short sale, you do not have to mark "yes".
• You are in control of the sale, not the bank.
• You may sleep better at night knowing who is buying your home.
• You will spare yourself the social stigma of the "F" word, foreclosure.
• Contrary to popular belief, you can be current on your payments and still do a short sale.
• Your home sale will be handled like any other home sale.

Buying Again After a Short Sale

If your payments have never fallen behind 30 days late and the lender does not require that you pay back the loan, Fannie Mae guidelines may allow you to buy another home immediately. The wait for an FHA loan is 3 years.

If your payments are in arrears yet a short sale is granted by your lender, you may qualify to buy another home with a Fannie-Mae backed mortgage within two years, regardless of whether the home is your primary residence.

Buying Again After a Foreclosure

With certain restrictions, you may be eligible to buy another home in 5 years if the home was your primary residence. Without restrictions, the wait is 7 years.

If you are an investor and do not occupy the home, the wait to buy with a Fannie Mae insured loan is 7 years.

Affects on Credit After a Short Sale

A short sale will affect your credit from 80 to up to 130 points. Once your short sale is concluded you can attempt to remove any and all late payments that may have occurred before and during the short sale.

We suggest that you wait three months from the sale of your property to ensure all parties have reported everything they may report. Then, have a full credit report “pulled” that includes all three credit repositories. From there, you can contact the three repositories and state that you were required to miss payments in order to be eligible for a short sale. The banks will have 30 days to respond to this request and at the moment, we are seeing that the banks are not responding and the late payments are being removed.

How is eHomeConnect different than my Local Realtor?