Benjamin Sovacool Taylor Donovan Realty, Inc. 8113 Tauren Ct Naples, Florida, 34119
Office: 239-234-6900 Cell: 239-285-7443 Fax: 239-262-7112
Lic. #: BK3119015
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Naples Florida Short Sale vs Foreclosure |
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Future Loans - Primary Residences
| Loan |
Foreclosure |
Short Sale |
| Fannie Mae |
Homeowner is ineligible for a Fannie Mae backed mortgage for 5 years. |
Homeowner is eligible for a Fannie Mae backed mortgage after 2 years. |
| FHA Loan - Late |
Homeowner is ineligible for a Fannie Mae backed mortgage for 5 years. |
Homeowner is eligible for a loan 3 years after the FHA insurance claim is paid to the lender, not the date of the closing |
| FHA Loan - Current |
Homeowner is ineligible for a Fannie Mae backed mortgage for 5 years. |
No wait for Freddie Mac or Fannie Mae backed loans - homeowner must be current on all other debts and obligations |
| VA Loan - Late |
Homeowner is ineligible for a Fannie Mae backed mortgage for 5 years. |
3 years |
| VA Loan - Current |
Homeowner is ineligible for a Fannie Mae backed mortgage for 5 years. |
3 years |
| Conventional Loan - Late |
Homeowner is ineligible for a Fannie Mae backed mortgage for 5 years. |
2 years |
| Conventional Loan - Current |
On any future 1003 applications, the borrower must answer "yes" to question "C" in Section VIII asking if they have had a foreclosure or deed in lieu in the last 7 years. |
No wait for Freddie Mac or Fannie Mae backed loans - homeowner must be current on all other debts and obligations |
Future Loans - Non-Primary Residences
| Loan |
Foreclosure |
Short Sale |
| Fannie Mae Loan |
An investor is ineligible for a Fannie Mae backed investment mortgage for 7 years. |
An investor will be eligible for a Fannie Mae backed investment loan after 2 years. |
| Conventional Loan - Late |
On any future 1003 applications, the borrower must answer "yes" to question "C" in Section VIII asking if they have had a foreclosure or deed in lieu in the last 7 years. |
7 years |
| Conventional Loan - Current |
On any future 1003 applications, the borrower must answer "yes" to question "C" in Section VIII asking if they have had a foreclosure or deed in lieu in the last 7 years. |
5 years |
Common Issues
| Issue |
Foreclosure |
Short Sale |
| Credit Score |
Score may be lowered from 250 to over 300 points. Typically will affect your score for over 3 years. |
Only late payments on your mortgage will show. It can lower your score as little as 50 points. The effect can be as little as 12 to 18 months. |
| Credit History |
Foreclosure will remain public record for 10 or more years |
A short sale is not reported on a person's credit history. It is typically reported as "paid in full", "settled" or "paid as negotiated" |
| Security Clearances |
Foreclosures can challenge a security clearance and may cause it to be revoked. |
Short sales typically do not challege a security clearance because of how they are reported. |
| Current Employment |
If you are in a sensitive position your employer may have the right to check your credit history at random. It could lead to loss of security clearance and in turn your employment. |
A short sale is not reported on a credit report and may not directly challenge employment. |
| Future Employment |
Many employers are requiring a credit check as part of the application process and it may have a negative affect. |
A short sale is not reported on a credit report and may not directly challenge employment. |
| Deficiency Judgment |
In all foreclosure cases in the state of Florida the lender has the right to pursue a deficiency judgment. |
In some cases such as HAFA short sales it is possible to have the lender waive their right to a deficiency judgment. |
| Deficiency Judgment (amount) |
Many times in Florida a home going through the foreclosure process and sold as a REO sells for a lower price resulting in a greater loss to the lender. |
A short sale is sold close to market value and minimizes the lender's loss. |
If you have a question about short sales or have decided a short sale may be right for you, please contact me using the form below.
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Last Updated ( Monday, 22 November 2010 )
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