Last week I began a discussion on how a short sale would affect your credit as opposed to allowing your home to go into foreclosure.  There is a far greater impact on your credit if you do not take steps to sell your property as a short sale (see Part I also). 

Here are a few more differences between a Short Sale and Foreclosure:

Security Clearances:

Foreclosure:  The most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony.  If a client is in the CIA, Military, Security, a police officer or holds any other position requiring a security clearance, in almost all cases the clearance will be revoked and the position will be terminated!                                                                            

Short Sale:  A Short Sale on its own doesn't challenge most security clearances.
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Current Employment:

Foreclosure: Employers have the right to check employees credit regularly.  A foreclosure in many cases can be grounds for immediate termination or reassignment.

Short Sale:  A Short Sale isn't reported on a credit report and is not a challenge to employment.
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Future Employment:

Foreclosure:  Many employers are required to run a credit check on all job applicants.  A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.

Short Sale:  A Short Sale is not reported on a credit report and is not a challenge to employment.
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Deficiency Judgement:

Foreclosure:  In 100% of foreclosures (except in states where there is no deficiency), the bank has the right to pursue a deficiency judgement.

Short Sale:  In some successful Short Sales it's possible to convince the lender to give up the right to pursuit a deficiency judgement against the homeowner.
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Deficiency Judgement  (Amount)

Foreclosure:  A foreclosure will go through an REO process if it doesn't sell at the auction.  In most cases this will result in a lower sales price and longer time to sale in a declining market.  This will result in a higher possible deficiency judgement.

Short Sale:  In a properly managed Short Sale, the home is sold at a price that should be close to the market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.
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If you need help with your current situation, contact me and I will be glad to assist you.  Our office specializes in Short Sales and can assist in getting your home sold before it goes into foreclosure. 

-Derek Heppe
Ace Realty 

 

If you are a homeowner that is in danger of losing your home, there are ways of getting out of your situation without too much damage.  Selling your home as a short sale may be one way to get out of a bad situation.  As a short sale, you can sell your property for less than what you owe on your home or property if you can show that you're having trouble making your payments.  Our office specializes in short sales, so we have the necessary forms to help you get started and are accustomed to dealing with these banks.

Because credit is so important these days to obtain financing, it is important to understand how a short sale would affect your credit vs. foreclosure.  What are some of the differences?

Foreclosure: Primary Home- Ineligible for a Fannie Mae backed mortgage for 5 years (Investor or Non-primary  home 7 years)
Short Sale:    Primary Home- Ineligible for a Fannie Mae backed mortgage for only 2 years. (Investor or Non-primary home 2 years)

Foreclosure:  Credit Score lowered from 250-300 points for typically a 3 year period.
Short Sale:     Credit Score lowered as little as 50 Points and can be as brief as 12 to 18 months.

Foreclosure:  Will remain on your Credit History for up to 10 years or more.
Short Sale:     A short sale is not reported on your Credit History.  The loan will be marked as 'paid in full' or 'settled'.

If you are a homeowner in need, we can help.  Call us today at (843)655-5777 or email me at DerekHeppe@DerekHeppe.com.

You are invited to connect with me, Derek Heppe on Facebook and other social networks. Keep up to date with Myrtle Beach Real Estate news, ask Real Estate questions and network with me. You will find me on Twitter, LinkedIn, Facebook, Google +1 & YouTube. Additionally, you;d like to follow Ace Realty On Facebook go to: http://www.facebook.com/AceRealtyCo  

     

If there was ever a time to buy, this is it! Myrtle Beach Luxury homes have never been so available at such discounted prices. Luxury Communities such as the Grande Dunes, Plantation Lakes, The Bluffs, Carolina Waterway Plantation, Legends, Seaside Plantation, & Barefoot Resort all have properties listed at historic lows. Let me put my experience and expertise to work for you to help find and secure your Myrtle Beach Dream Home.  Myrtle Beach Luxury Properties include: Single Family Homes, Townhouses, Luxury Condominiums, Oceanfront Homes & Condominiums, Golf Course Community Properties, Multifamily  & Investment Opportunities. Visit my Myrtle Beach Luxury Home Page at DerekHeppe.com

 

Prefer to see Myrtle Beach home listings on a map?  Check out my new webpage at: http://www.derekheppe.com/Myrtle_Beach_Homes_Map.html .  Find homes, condos, land, boatslips & commercial property for sale.  All listings displayed are current so you can see what comes on the market immediately.  I know many people get frustrated on secondary website where many of the listings are old and actually not for sale.  

If you are struggling to pay your mortgage payment, a Short Sale may be an option to consider. If you can prove that you're having "financial hardship" and are unable to make your payments, you may qualify for a Short Sale.  Lenders prefer this over Foreclosure because in the end it saves them money.

Myrtle Beach Green Homes and Condos For Sale.

Derek Heppe is a National Association of Realtors SFR- Short Sales & Foreclosure Resource Designee.  Whether you are a seller in need of assistance or a buyer looking for a discounted property, use a SFR Certified REALTOR who has taken the courses necessary to guide you through the process and share with you all of your options. 

If you have any questions concerning short sales, REO's & foreclosures please contact Derek Heppe at 843.655.5777.

In an effort to help bring stability to home values and accelerate the sale of vacant properties, the FHA anti flipping rules have been rescinded! Effective February 1, 2010 the FHA has waived the 90 day rule on financing of properties that have recently purchased by investors. This is great news! There are plenty of investment properties on the market in Myrtle Beach...it's time to take advantage of these deals.

Derek Heppe, REALTOR & CRS
REMAX Beach & Country
Phone: 843.655.5777
Email:  DerekHeppe@DerekHeppe.com
Website:  http://DerekHeppe.com

DR Horton is holding a grand opening on January 23rd, 2010 in Summerall Oaks.  This community has well constructed three bedroom homes that generally start around $160,000.00.  They are offering specials on some of their inventory homes as well, if under contract by the end of the month.  If you have any interest in learning more about these homes, please contact me.  I will be glad to provide you with full buyers representation. 

Derek Heppe
REMAX Beach & Country