How is my Credit after Foreclosure, Short Sale and Deed in Lieu
Today I received a call from a homeowner asking how his credit is impacted with a Foreclosure vs. Short Sale. Since things have been changing daily in the Real Estate and Lending Industry… I wanted to recheck to give the most accurate information.
As of today; this is the most current information I was able to find.
A homeowner (borrower) that becomes delinquent on their mortgage(s), which completes a short sale, or gives the property back with a deed-in-lieu, or the bank foreclosed upon, will have their credit affected.
· Current guidelines allow qualification for Federal National Mortgage Association (Fannie Mae) insured loan 5 years after a foreclosure, 4 years after a deed-in-lieu, or 2 years after completion of a short sale.
· Declaring bankruptcy to delay a foreclosure, or to wipe away a deficiency judgment after foreclosure, will impact the borrower’s credit report for 10 years
There are many ways to avoid a Foreclosure. Please go here for more information:
When I was suffering with pain and surgeries and then my husband lost his job almost 3 years ago we tried the Loan Modifications, taking all our savings to make it work, cashing in our 401k’s, cashing in my SEP-IRA… it was Horrible. I felt like EVERYONE had their hand out.
I know how it feels, I know how it affects us emotionally, physically and the stress it puts on your spouse/partner and family. It is utterly draining and embarrassing.
If you are working with a REALTOR® or not; I would like to help your Family (with REALTOR®s too) for FREE!
Tammy Pryor – REALTOR®, ABR, ASP, ASR, CRS, e-Pro, GRI, Luxury Home Marketing Certified, PMN, REO & Short Sale Lyons Gate Certified, HAFA and 3648 Certified, RRC, SRES,
Womens Council of REALTORS® SAC President 2011 (learn more about WCR)
“Stop Dreaming – Start Moving”® with Team 292-SOLD of Better Homes and Gardens Ruby Hill
925-292-SOLD (925-292-7653)
Fax: 925-315-8512
Email: Tammy@292SOLD.com
DRE #01320630
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