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Encino, Sherman Oaks & hood living

News and events in Valley+Los Angeles. Housing. Style. Encino & Beyond

By Inna Ivchenko | Agent in Encino, CA
  • Speeding Up Short Sales Process( update)

    Posted Under: Foreclosure in California, Credit Score in California  |  June 2, 2012 12:15 AM  |  364 views  |  No comments
    Beginning June 15, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, will require both agencies to give short-sale buyers a final decision within 60 days.

    Key points to understand:

    **Under this same guideline, Fannie Mae and Freddie Mac also must respond to initial requests for a short sale within 30 days of receiving the buyer’s submission.

    **Right now: many of buyers still have to wait months for a decision and then end up not getting the house they wanted~ having some time frames would make transaction more understand- Able.

    **Lenders favor short sales because they are less costly and more efficient than foreclosures.
     Yet the homeowners, trying to exit as gracefully as possible, never know how long the process will take or how badly their credit will be hurt.

    **Now important information about credit 'damage':
    Both short sales and foreclosures remain on the credit report for seven years, but foreclosures don’t appear until the legal paperwork is filed, and that could take months.
    The effect was measured by an analysis by VantageScore, a provider of credit scores used by lenders. The higher the credit rating a consumer has, the more points he or she would lose in a short sale(!!!!!)

    @If consumers started with an 830 score, they would most likely lose 100 to 110 points from a short sale, 120 to 130 points from a foreclosure. But a homeowner with a 625 score, who is behind on his mortgage and some credit card payments, would lose 15 to 25 points from a short sale and 10 to 20 points from a foreclosure.

    P.S. Click the picture to scale for reading.
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