Why do Homeowner's Like Foreclosures Instead of Short Sales?

As a licensed full-time real estate agent certified in distressed property, I am amazed to still see abandoned homes. There has been so much education given to homeowners seeking help for their state of affairs on line and in the newspapers. If you feel more comfortable having me come and speak about your situation in your home or at my office, please call me.

Foreclosed homeowner’s are ineligible for a Fannie Mae back loan up to 7 years. Yes, 7 years is a really long time not to have a home after loosing your current home. With a short sale, your turn around time for a Fannie Mae loan is cut by 5 years, and you are eligible within 2 years! FHA loans may be 3 years for eligibility.

Foreclosed homeowners will be asked on any 1003 application if they had a foreclosure, when applying for a future loan and this can affect their rates on a new loan. For a short sale homeowner there is no question pertaining to a short sales.

Your credit history is affected when you have a foreclosure and will remain as a public record for 7 years or more. With a short sale, your credit history will not report a short sale.

With a foreclosure, the bank has the right to go after you for the deficiency judgment. Many of the  short sales are not pursuing a deficiency judgment.

Susan Penn, PA, SFR, CDPE www.susanpenn.com

EWM Realtors® | A HomeServices of America Company | An Affiliate of Berkshire Hathaway

2000 Main Street, Suite 103 | Weston, FL 33326

T: 954.306.7337 | C: 954.557.5993 | F: 954.515.0200 | penn.s@ewm.com | www.ewm.com

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