Federal Regulators are considering raising the down payment to purchase homes to 20% for affordable rates. Anything less will raise the interest rates and discourage prospective buyers from purchasing a home.
Click the link below to send a message to the U.S. Department of Housing and Urban Development.
https://secure.homeowneraction.org/site/Advocacy?cmd=display&page=UserAction&id=153&v=8
Short Sale vs. Foreclosure ISSUE
FORECLOSURE
SUCCESSFUL SHORT SALE
Future Fannie Mae Loan
(Primary Residence)
1
A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae-backed mortgage for a period up to 7 years with some exceptions based on extenuating circumstances. See: efanniemae.com
A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed mortgage within 2 years (see page 2 for LTV ratios).
Future Fannie Mae Loan
(Non Primary)
2
An investor who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period up to 7 years with some exceptions based on extenuating circumstances. See: efanniemae.com
An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed investment mortgage within 2 years (see page two for LTV ratios).
Future Loan with any
Mortgage Company
On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks "Have you had property foreclosed upon or given title or deed-in-lieu thereof in the last 7 years?" This will affect future rates.
There is no similar declaration or question regarding a short sale.
FHA – If current at the close of short sale, a homeowner may apply for an FHA loan immediately. If homeowner is late before close of short sale closing, will be eligible for FHA loan after 3 years.
3
Credit Score
Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years.
Only late payments on mortgage will show, and after sale, mortgage is normally reported as "paid as agreed," "paid as negotiated," or "settled." This can lower the score as little as 50 points if all other payments are being made. A short sale’s effect can be as brief as 12 to 18 months.
Credit History
Foreclosure will remain as a public record on a person’s credit history for 7 years or more.
A short sale is not reported on a persons credit history. There is no specific reporting item for "short sale." In most cases a loan is typically reported "paid in full, settled" or "paid as negotiated."
Security Clearances
Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police or security officer, in the military, in the CIA, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.
On its own, a short sale does not challenge most security clearances.
4
Current Employment
Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination.
A short sale is not reported on a credit report and is therefore not a challenge to employment.
5
Future Employment
Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.
A short sale is not reported on a credit report and is therefore not a challenge to employment.
6
Deficiency Judgment
In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.
In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.
Deficiency Judgment
(amount)
In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.
In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.
Live in Mission Viejo, one of the safest cities with membership to Lake Mission Viejo Association.
This Madrid home, built in 1972 has 3 bedrooms with the loft being used as the 4th bedroom, 3 car garage. Kitchen has granite tile counters and opens to large family room with wet bar, sink and fireplace. All bedrooms located on the second level, second fireplace in the master bedroom.
Formal living room and dining room, large and spacious backyard also with patio cover, fountain and fire pit.
Close to shopping, schools in the Capistrano Unified School District, freeways, toll roads and more.
Available for showings after August 15, 2011. 1 year Lease for $2,900 per month.
More photos to follow.
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The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. © Copyright, SoCalMLS®, Copyright, CARETS®  |
How is the market doing in Mission Viejo? See the Altos Research Report for Single Family Residences.
Upgrades Included!
· Why wait when you can get custom upgrades without paying extra?
· Move into your home in 30 days or less.
· Looking for another size or price range? Call me for other available homes in the area.
· Builders are cooperating with Brokers!
Let me introduce you to the builder and get representation and guidance through the escrow process. Ask me for more information.
Upgrades Included!
· Why wait when you can get custom upgrades without paying extra?
· Move into your home in 30 days or less.
· Looking for another size or price range? Call me for other available homes in the area.
· Builders are cooperating with Brokers!
Let me introduce you to the builder and get representation and guidance through the escrow process. Ask me for more information.
ADVERTISEMENT
Many owners ask what projects will get the most resale? See the top 5 listed in the article.
Special thanks to Escrow Leaders for the Altos Research Market Update Report.
Open house Thursday, July 7th 4:00-6:00pm
16 BIG PINES
Aliso viejo, ca 92656
Upgraded model perfect Glenwood Park home in the popular city of Aliso Viejo. Turnkey townhome has 2 bedrooms, 2.5 baths, 2 car garage, gated front entry with fresh landscaping. Features a spacious floor plan with beautiful travertine fireplace. Upgrades include brand new 12mm micro beveled plank laminate floors, granite counters in kitchen and bathrooms, new stainless steel appliances, new fixtures, carpet, windows and much more. Fresh paint makes this home very inviting! The quiet community of Glenwood Park is complete with 2 lighted tennis courts, pool, spa, club house, park area and playground. Close to award winning schools, bike trails, toll roads, golf, shopping, dining and entertainment.
Standard Sale offered at $349,900
Presented by Gloria Bumanglag
In case you are wondering, Standard Single Family homes can be purchased for less than $500,000 in south Orange County. The attached pdf includes a very small sample of homes from Lake Forest down to San Clemente. These listings were obtained from our Local Board of Realtors, OCAR.
You can make your offer with a 3.5% downpayment using FHA. (Regulators are talking about increasing downpayments to 5% for FHA).
You can move in 30 days after your offer is accepted on this short list. Short Sales have been omitted on this list.
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