Short Sales vs. Foreclosure

It is so important for distressed home owners to be sure they understand the differences between foreclosing and short selling a property. As a Real Estate Agent in Arizona I believe it is my responsibility to continue to study, learn and educate my clients as our market changes daily. I am a Certified Distressed Property Expert and would like to touch on a few basic differences between Short sales and Foreclosure.

Short Sale:

• Credit Score - If all payments remained current during the short sale. It can be as low as 50-80 points. This will vary depending on other debt payments.
• Seasoning Period to Buy a Home Again - 2 years for Fannie Mae
• Security Clearances - Does not challenge security clearance
• Future Loans - No questions (today) regarding short sales

Foreclosure:

• Credit Score- May be lowered anywhere from 250 to more than 300 points. This will vary depending on other debt payments.
• Seasoning Period to Buy a Home Again- 5 years for Fannie Mae
• Security Clearances- Most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony.
• Future Loans- Client must answer "yes" to "Have you had a property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" This will affect future rates.

As an agent that is focused on helping home owners Short Sale their property versus foreclosure I know I must continue my education! The game keeps changing and evolving. It is my responsibility to stay up to speed so I can best support my clients. These few differences I have listed above can always change as laws change and the market evolves.

There are roughly 1,633 single family homes on the market today in Gilbert, AZ that are active or active with a contingency. Of these 1,633 Gilbert Homes, 874 are marked as needing short sale approval, 53% of the Gilbert Market alone is made up of short sales!

Additional information on Short Sales vs. Foreclosure can be found at www.lisamatyhelps.com.