» Orlando Short Sales
All Rights Reserved: Spencer Realty Professionals 2011 / Florida Licensed Real Estate Broker
3956 Town Center Blvd. #135
Orlando, FL  32837
SHORT SALE vs. FORECLOSURE

Like so many people, you might have found yourself in a difficult housing situation.  Prices have dropped significantly and now your upside-down on your mortgage.

Even if you have significant assets, you WILL qualify for a short sale.  We have a 100% short sale approval rate and have closed hundreds of short sales.  You could say, we've perfected the short sale process. 

So, what should you do?  You'll want to know about your tax liability, impact on your credit score, what a "deficiency waiver" is and why its SO important, and what your options are throughout the short sale process.  Just fill out the form below and we'll contact you for a free consultation.  Our promise to you... NO PRESSURE.  Just ask your questions, get your answers and make up your mind as to what you want to do.  Below this form is a simple table giving you the answers you need to help make that decision.  In many cases we can negotiate the entire balance of your mortgage away!  We also work with many cash investors who are ready to purchase your property now.    We look forward to speaking with you!
FORECLOSURE

Employers have the right and are actively checking the credit regularly of all employees that are in sensitive positions.  A foreclosure in many cases is grounds for immediate reassignment or termination


Many employees are requiring credit checks 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



In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.



In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this results in a sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.



A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.




An investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7
years.



On any future 1003 application, a prospective borrower will have to answer YES to a question in C in Section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" this will affect future rates.


Score may be lowered anywhere from 250 to over 300 points.  Typically will affect score for over 3 years.








Foreclosure will remain as a public record on a person's credit history for 10 years or more.





Insurance Companies often run a credit report to assess their risk.  A foreclosure will trigger higher rates.
ISSUE

Current Employment






Future Employment







Deficiency Judgement





Deficiency Judement
(amount)







Future Fannie Mae Loan-Primary Residence
(effective May 21,2008)




Future Fannie Mae Loan-
Non Primary





Future Loan with any
Mortgage Company







Credit Score










Credit History






Insurance
SUCCESSFUL SHORTSALE

A short sale is not reported on a credit report and is therefore not a challenge to employment




A Short Sale is not reported on a credit report and is therefore not a
challenge to employment.





In many successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the
homeowner.

In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.



A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.


An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.


There is no similar declaration or question regarding a short sale.







Only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale's affect can be as brief as 12 to 18 months.



Short sale is not reported on a credit history. There is no specific
reporting item for "short sale." The loan is typically reported "paid in full, settled."


Since a Short sale is not reported on a credit history, insurance
companies do not perceive any extra risk and do not charge higher rates for this reason.
Information in table provided by ditchthehouse.com