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National Assoc of Realtor News


   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.