Sunday, March 6, 2011

Short Sale - Know Your Options (part 5)

Short Sale:  A Short Sale transaction occurs when your lender is willing to accept a payoff for less than the amount owed
vQualifications That Indicate A Short Sale May Be Right For You:
§Your home’s value has dropped below the amount that is still owed on it
§Your loan is near or already in default status
§Financially you have fallen on hard times ~ Unemployment, Death, Bankruptcy, Medical Emergency, Divorce or Lack of Assets can all constitute hardship
vHow Does A Short Sale Affect My Credit? 
§A Short Sale May Appear On Your Credit Report As:
Paid Settlement ~ credit scores typically drop 50-150 points
Paid In Full For Less Than Full Balance ~ credit scores typically drop 50 – 150 points
Pre-Foreclosure Redemption ~ credit scores may drop as above or remain neutral
vWaiting Period to Buy A New Home:
Fannie Mae & Freddie Mac guidelines state that the waiting period before you can buy another home is 2 years  from the date the short sale transaction is completed.  There are not exceptions for extenuating circumstances.

Susan
"...all you need to know about Real Estate"

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