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Why is a Short Sale Better Than a Foreclosure When it Concerns Your.

.Credit Score: Foreclosure- Scores may be lowered anywhere from 150 to over 300 points.
affect credit scores for over 3 years. Typically, this will

Short Sale- Only late payments on mortgage will show, and after sale, mortgage will be reported as
paid or negotiated. This will lower credit scores as little as 50 points, if all other payments are being made. A short sales effect can be as brief as 12 to 18 months.

.Credit History: Foreclosure- Foreclosure will remain as a public record on a persons credit history for 10 years or
more.

Short Sale- The loan is typically reported as Paid in full and settled. .. Any future Fannie Mae Loans for a Primary Residence: Foreclosure- A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed
mortgage (FHA insured) 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 (FHA insured) backed mortgage after only 2 years.

Any future Fannie Mae Loans for a non-primary residence: Foreclosure- An investor who allows a property to go to foreclosure is ineligible for a Fannie Mae
(FHA insured) back mortgage for a period of 7 years.
The Hunter Group @ Keller Williams Marisa Hunter, DRE 01789037 Direct: 951.870.5183 || Fax: 951.840.2092

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

Any future loan with any mortgage company: Foreclosure- On any future 1003 Loan Application, a perspective borrower will have to answer YES
to the question that asks Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? This will affect all future interest rates.

Short Sale- There is no similar declaration or question regarding a short sale on the Standardized
and Required Loan Application.

.Deficiency Judgments: Foreclosure- In 100% of foreclosures (except in states where there is no deficiency) the bank has the
right to pursue a deficiency judgment. California is a no deficiency state, except on third money, nonpurchase loans.

Short Sale- In some successful short sales, it is possible to convince the lender to give up the right to
pursue a deficiency judgment, even hard money deficiencies, against the homeowner.

.Deficiency Judgment amount: Foreclosure- In a foreclosure, the home will have to go through a REO process if it does not sell at
auction. In most cases, this will result in a lower sales price, and a longer time to sell in a declining market. This will result in a higher possible deficiency judgment.

Short Sale- In a properly managed short sale, the home is sold at a price that should be close to
market value, and, in almost all cases, will be better than REO sale, resulting in a lower deficiency amoun

THERE IS HELP FOR THOSE FACING FORECLOSURE...DONT RUIN YOUR CREDIT!


Call or E-mail The Hunter Group now to have a FREE EVALUATION of your situation and your propertys value.
The Hunter Group @ Keller Williams Marisa Hunter, DRE 01789037 Direct: 951.870.5183 || Fax: 951.840.2092