Foreclosure on a home has consequences for the family, the community, the housing market, and the economy. However, the option for a short sale provides a way for troubled homeowners to prevent foreclosure and many of the dire penalties involved.
Most of the times when we sit down for the initial consultation with home owners, they want to know what’s the repercussions of a short sale will be on their lives and everything they have worked so hard to achieve.
The majority of our clients have a notion of what a short sale is, but we still like to explain in detail. Here are some of the most popular questions our clients have:
So, what is a short sale? A short sale is an agreement in which your mortgage lender agrees to accept a payoff on the loan for less than the balance. Many lenders agree to a short sale because they receive more of the loan balance in comparison to the amount they would gain from selling the property following a foreclosure. 
What are the implications to my credit score? Following a successful short sale your mortgage will be reported on your credit score as either paid or negotiated, lowering your score as little as 50 points and affecting you for only 12 to 18 months. After a foreclosure, however, your credit score can lower as much as 300 and usually at a minimum of 250 points and affects your score for over three years.
What are the implications to my credit history? A short sale is usually reported as paid in full and is not reported on your credit history. A foreclosure will remain on your credit history for 10 years or more and will remain as public record.
How long will I have to wait to buy another home? After a foreclosure, you may end up waiting another 24 to 72 months before a mortgage lender will offer you an interest rate that is acceptable. Most mortgage lenders report that for homeowners who have undergone a previous short sale they may get a reasonable interest rate in less than two years.
What will be the effects on my future loans? For most mortgage lenders you will not be asked to declare or be questioned regarding a short sale on any standard loan application (1003).
Does it affect my employment opportunities? A short sale does not appear on a credit report and will not challenge your current employment status.
If you or any one you know is considering a short sale, contact the DiBiase Team to get your FREE initial consultation. We have helped over 100 families avoid foreclosure, you are not alone.
www.glendaleforeclosurehelp.com
Call us at (623) 362-3051
Fax (623) 218-9192
Shelby DiBiase has been an active Real Estate agent since 1997. Currently the team leader of the "DIBIASE TEAM" with ReMAX Professionals. In this constantly changing market our team is not only surv
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