Marshall Carrasco Reno's #1 Short Sell Expert www.renohelp.org. Short Sale vs Foreclosure

1. Short Sale Vs. Foreclosure
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2. Issue 1 Future Fannie Mae Loan- Primary Residence 1
Foreclosure Successful Short Sale
A homeowner who loses a home A homeowner who successfully
to foreclosure is ineligible for a negotiates and closes a short sale will
Fannie Mae-backed mortgage be eligible for a Fannie Mae- backed
for a period of 5years. mortgage after only 2 years.
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3. Issue 2 Future Fannie Mae Loan- Non-Primary2
Foreclosure Successful Short Sale
An investor who allows a There is no similar declaration or
property to go to foreclosure is question regarding a short sale.
ineligible for a Fannie
Mae-backed investment
mortgage for a period of 7 years.
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4. Issue 3 Credit Score
Foreclosure Successful Short Sale
• Score may be lowered • Only late payments on a mortgage
anywhere from 250 to more will show, and after sale, mortgage
than 300 points. is normally reported as 'paid as
• Typically will affect a credit agreed', 'paid as negotiated', or
score for over 3 years. 'settled'.
• This can lower the score as little as
50 points if all of the other
payments are being made.
• A shore sale's effect can be as brief
as 12 to 18 months.
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5. Issue 4 Credit History
Foreclosure Successful Short Sale
Foreclosure will remain as a • A short sale is not reported on a
public record permanently, and credit history.
on a person's credit history for • There is no specific reporting item
10 years or more. for 'short sale'.
• The loan is typically reported 'paid
in full, settled'.
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6. Issue 5 Security Clearance
Foreclosure Successful Short Sale
• Foreclosure is the most On its own, a short sale does not
challenging issue against a challenge most security clearances.
security clearance outside a
serious misdemeanor or
felony conviction.
• If a client has a foreclosure
and is a police officer, in the
military, in the CIA, security,
or any other position that
requires a security clearance,
in almost all cases clearance
will be revoked and position
will be terminated.
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7. Issue 6 Current Employment
Foreclosure Successful Short Sale
• Employers have the right and A short sale is not reported on a
are actively checking the credit report and therefore not a
credit of all employees who challenge to employment.
are in sensitive positions.
• In many cases, a foreclosure is
reason for immediate
reassignment or termination.
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8. Issue 7 Future Employment
Foreclosure Successful Short Sale
• Many employers are requiring A short sale is not reported on a
credit checks on all job credit report and is therefore not a
applicants. challenge to future employment.
• A foreclosure is one of the
most detrimental credit items
an applicant can have and in
most cases will challenge
employment.
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9. Issue 8 Deficiency Judgment (Not Applicable in California)
Foreclosure Successful Short Sale
In 100% of foreclosures (except In some successful short sales, it is
in those states where there is possible to convince the lender to
no deficiency), the bank has the give up the right to pursue a
right to pursue a deficiency deficiency judgment against the
judgment. homeowner.
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10. Issue 9 Deficiency Judgment (amount)
Foreclosure Successful Short Sale
• In a foreclosure, the home will In a properly managed short sale, the
have to go through an REO home is sold at a price that should be
process it does not sell at close to market value, and in almost
auction. all cases will be better than an REO
• In most cases this will result in sale resulting in a lower deficiency.
a lower sales price and longer
time to sale in a declining
market.
• This will result in a higher
possible deficiency judgment.
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11. Contact MARSHALL CARRASCO
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9740 S. McCarran Blvd #103, Reno,
NV 89523
Call Us : 775-525-1205
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