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Avoid the foreclosure stigma
– Homeowners will always have to
disclose that they had a foreclosure
on any mortgage application and
(many job applications) that they
submit in the future. This can have
an adverse affect on their future
mortgage rates. Foreclosure is asked
about specifically in credit
inquiries. There is no seven-year
time limit on this item.
The Lender Pays Realtor
Commission - Yes that is correct, in
a Short Sale most lenders will pay
the Realtor's Commission.
Protect credit score – Credit
scores will be lowered by 300-plus
points (per loan) by foreclosure.
The impact of a short sale—about
half that much.
Improve eligibility for a
government insured loan – The
homeowner will be ineligible for a
government insured loan for 5-7
years (only two years in a short
sale). A foreclosure is the one
credit report item that is almost
impossible to have repaired.
Avoid a deficiency judgment –
Lenders can seek a deficiency
judgment against the homeowner and
collect any amount they do not
recover at sale.
Protect employment prospects
– Many employers run credit checks
on prospective employees.
Foreclosure is one of the top items
that will put a potential new hire,
or even current employment, in
jeopardy.
One More Tip: Don’t believe everything you read
about how long short sales take and
how few get finalized. Short sale
timelines, while still longer than
normal, are shrinking as lenders get
their paperwork act together. Find
out who the top short sale agents
are in your market. These pros are
closing 70 to 90 percent of the
short sales they represent—more than
three times the national average.
They know where to find buyers, and
how to negotiate the buyer’s offer
effectively with lenders and get the
deal closed—so the homeowner can
move on with life and recover.
These are the top reasons, but there are more. An
expert short sale expert agent
like Smitha and Rahul can give a full picture
of the options. Please
Contact Us
for more information.
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