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Answers (12)
- Julia Carnahan, "Julia Carnahan"
- Contributions:410
Absolutely !
I've talked to a few people this week alone who don't believe they have options.
Always ask if you are eligible for a Loan Modification.
There are Loan Modification programs that are Gov't programs that some of you who will have too high of an annual income to qualify for! This does not mean the Mtg Company will not do their own loan modification; taking the balance past due and rolling it into your loan.
There are options - don't forget it is important to " Communicate " with your lender. Sometimes on a weekly / monthly basis
I've talked to a few people this week alone who don't believe they have options.
Always ask if you are eligible for a Loan Modification.
There are Loan Modification programs that are Gov't programs that some of you who will have too high of an annual income to qualify for! This does not mean the Mtg Company will not do their own loan modification; taking the balance past due and rolling it into your loan.
There are options - don't forget it is important to " Communicate " with your lender. Sometimes on a weekly / monthly basis
- Michael Russell, "michaelrussell"
- Contributions:330
yes, and it also affects how long you have to wait before you can obtain a mortgage again. 2 years for a short sale vs 4 year for foreclosure.
- sunnyview
- Contributions:25115
This question is from 2008. The date is visible in the top post box. Please leave the zombies underground. There are current posters that could use your insight.
- Brian Corn, "btcorn"
- Contributions:1
Short Sale is the better option over Foreclosure. However, It will still adversely affect your credit report and ability to obtain credit. In general you will need to be 90 days late (notice of default) in order for the short sale bank to accept a short sale package. The 90 day late will show on your credit report. It will also create a red flag for potential lenders when reviewing your credit file. In some cases it is possible to negotiate the adverse reporting with the short sale mitigator.
- Mindy Dotson, "mindy43619319"
- Contributions:125
Don't foreclose if at all possible. Do anything that you can to keep from the bank taking it. Make the case to the bank for a short sale. They will ask you to give them a short sale package that will contain a hardship letter, pay stubbs, financial statement, and sometimes more. Just find out what all that is required. Make sure to include your loan number on all papers sent in. If the home is in need of repair that you cannot afford, take detailed photos and send them along with the other documents. Be prepared to wait for a response, but stay on it. Call every day to see if the package has been looked at by someone in the asset department. You may need to speak to the litigation department as well. Avoid the foreclosure and ask the bank to approve the short sale. It would be a great deal for you and the new owners. Be prepared however, the bank may come after you for the difference, and you could also be taxed on the difference in the loan balance and the sales price. Be sure to check on these things.
- Victor Gurrola, "Victor T. Gurrola"
- Contributions:1190
I could not agree more with the Board. I have a client who Short sold three years ago due to divorce, and we recently ran her credit 675 middle fico. not to shabby if you ask me.
- Jason Van Mill, "Jason Van Mill"
- Contributions:14
Yes, with recent FNMA changes their guidelines, it sure does make a difference. You can buy a home after a 24 month waiting period with a short sale/preforclosure on your record and 48 months with a foreclosure on your record.
If at all possible , do a Short Sale before giving it to the bank.
If at all possible , do a Short Sale before giving it to the bank.
- Richard Combs, "RichardMCombs"
- Contributions:186
C.A.R. has on numerous occasions stated that a foreclosure is significantly worse than a short sale for your credit score.
- Oliver Indra, "OliverIndra"
- Contributions:58
YES! Try to do a short sale if possible.
- Mary E. Adams, "The Peoples Realtor"
- Contributions:29
Yes, a foreclosure will hurt your credit more than a short sale, however, you will not be responsible for the deficiency! Congress passed a law within the last 12 months about forgiving the deficiency. Do try and work something out with your lender - maybe a loan modification. Best of luck, and a Happy New Year ahead!
- Anetta Bani Hani, "zanita08"
- Contributions:1
YES,yes,yes!!!! Foreclosure will be on your credit on 7 years and also you can be responsible for deficiency of debt.You won't be able to buy new car,open credit cardsand even the cards that you have will be effected.Banks can lower your credit cards limits or increase your intrest rates up to 30%!!!Short sale will effect your credit for a year .Your credit score will drop 80-100 points .You should work out something with your lenders.They are willing to cooperate more then they used to.They can offer you a few options how to solve your problem.Sometimes they offering lowering your intrest rate or just suspend your payments for a few months.
GOOD LUCK!
GOOD LUCK!
- Emma Lefkowitz, "elefkowitz"
- Contributions:24
The answer is a definitive YES! If you can do a short sale...by all means work with your lender and try to figure something out. A foreclosure stays on your credit report for approximately 7 years and will do a lot of damage to your credit score. A short sale will also effect your credit, but not nearly as severely. It is always good to consult your accountant on these matters, but please feel free to email or call me with any additional real estate questions. Happy Holidays!
Does a foreclosure effect your credit more than a short sale?
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