FORECLOSURE VS. SHORT SALE

Current economic conditions are causing heartache and extreme stress for some local families.

Regardless of the reasons a large percentage of homeowners are in financial distress due to the current real estate market.

Do you know someone who is falling behind on their mortgage payments?
There may be options other than foreclosure or bankruptcy.  Foreclosures negatively impact credit, future livelihood and can disrupt a family as well as negatively impact the property values.
These options may include loan modification or a short sale.

What is a Short Sale?
A short sale is a negotiation in which the homeowner qualifies and the mortgage company or companies accept less than the full balance of the loan at closing.

What are some of the benefits of a Short Sale?
•No additional funds required at closing.
•Avoid foreclosure and many times a judgement.
•Preserve your credit.
•Commissions and fees paid by lender.

The Short Sale has been referred to as the 'brain surgery of real estate' and is one of the most important aspects in today's market.  CDPE's (Certified Distressed Property Expert) successfully close over 80% of Short Sales nationwide compared to less than 20% represented by a typical Realtor.

Foreclosure Ineligible for Fannie Mae backed mortgage for 5 years. Borrower will have to disclose foreclosure on future loan applications. Credit score may be lowered 250 to over 300 points. Typically will affect score for over 3 years. Foreclosure will remain as a public record on a credit history for 10 years. Many employers require credit checks on job applicants and a foreclosure shows on your credit report.

Short Sale Eligible for Fannie Mae backed mortgage after only 2 years. There is no similar declaration or question regarding Short Sale. Only late payments on mortgage will show and after sale, mortgage will be reported as paid or negotiated. This lowers the score as little as 50 points if all other payments are being made. A Short Sale's effect can be as brief as 12 to 18 months. A Short Sale is not reported on a credit report. A Short Sale is not a challenge to finding employment.

Time is of the essence!
Any homeowner experiencing or expecting financial problems needs to act quickly. Contact Susan Camiliere and her partners to learn more about homeowners consequences and available options to begin the process of eliminating the stress.