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 buyerâ€™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-
**Lenders favor short sales because they are less costly and
more efficient than foreclosures.
Â 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 donâ€™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
P.S. Click the picture to scale for reading.