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"