FORECLOSURE vs SUCCESSFUL "SHORT SALE"
ISSUE FORECLOSURE SHORT SALE
_________________________________________________________________________________________Future Fannie Mae Once foreclosed upon, not Allowed after 2 years.
Primary Res Loan allowed for 5 years
______________________________________________________________________________
Future Fannie Mae Not allowed for 7 years but Allowed after 2 years.
Investment Loan could be longer
______________________________________________________________________________
Future Loan with Will always have to answer No mention of "Short Sale"
any Mortgage Co. "YES" to having been fore- in loan application.
closed upon, which will
effect future rates
______________________________________________________________________________
Credit Score Score could be lowered from Only late payments will show
250 to over 300 points and on credit report. This will
for a period of over 3 years. lower the score ~50 points
This will affect score for only
12 to 18 months.
_____________________________________________________________________
Credit History Remain on credit history and Not reported on credit
public record for 10 years. history.
_____________________________________________________________________
Security Clearance Foreclosure is the most chal- Does not challenge most
lenging issue against a sec- securtiy clearances.
urity clearance. In almost
all cases clearance will be
revoked and position will
be terminated.
_____________________________________________________________________
Deficiency Judgement In 100% of Foreclosures the bank In some cases it is possible for
has the right to pursue a deficiency the lender give up the right to
judgement. pursue a deficiency judgement.
_________________________________________________________________________________________
Deficiency Judgement In a foreclosure the home will have No legal processing, so much
(amount) to go through a long legal process. Lower Deficiency.
This will increase the deficiency to the
lender resulting in a Higher Judgement.
__________________________________________________________________________________________
Current Employment Can be grounds for immediate Not reported on credit report so
reassignment or termination not an employment issue.
______________________________________________________________________
Future Employment A Foreclosure is one of the most Not reported on credit report so
detrimental credit items an ap- not an employment issue.
plicant can have and in most
cases will challenge employment
___________________________________________________________________________________________
As we are not engaged in the practice of law nor tax consulting, it is advised to consult a tax attorney or lawyer to confirm accuracy of these statements and to apply them to your individual case.
