A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortage for a period of 5 years.
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 llast 7 years?" this will affect your future rates.
Foreclosure will remain as a public record on a person's credit history for 10 years or more.
A homeowner who successfully negoctiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.
There is no similar declaration or question regarding a short sale.
Only late payments on mortgage will show and be reported as paid or negoctiated. This will lower the score as little as 50 points if all other payments are being made. A short sale's affect can be as brieF as 24 to 36 months.
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'.
Did you know that Foreclosure is not the only option?
Do not let it happen to you because You did not know what they are.
Did you know?
•Banks prefer to do a short sale over a foreclosure.
•Banks are not in the business of owning property and do not want to foreclose on you.
•Short sales would not negatively impact your Credit as much as a foreclosure would.
In today’s market hiring a professional is more important than ever.
