Home Selling in Wethersfield>Question Details

Monie9, Home Seller in Hartford County, CT

How does short sale vs deed in lieu affect credit?

Asked by Monie9, Hartford County, CT Wed Oct 21, 2009

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6
Monie:

A short sale affects your credit about 50 points VS a foreclosure affects it by 200 points.
I would highly recommend you contact an attorney who specializes in this area. there is a website you can look up attorneys to see if they meet the criteria .

If you have any questions, please feel free to contact me at 203-682-4327
Betty @ William Raveis Real Estate email: strollb@raveisre.com
0 votes Thank Flag Link Tue Nov 3, 2009
That's a little misleading. Your credit doesn't have to be shot to qualify for a short sale. Your credit report has no bearing on whether you qualify or not.
However both short sales and foreclosure affect your credit. A deed in lieu affects it just like a foreclosure. Short sales are less harmful to credit and the two years instituted by Fannie Mae is much shorter than what the foreclosure would do. According to Fannie Mae if you had no late payments and then a short sale, you could qualify for a new purchase right away. I recently wrote about this: http://javanaim.topproducerwebsite.com/blog/?p=15
A realtor cannot help you with a deed in lie, a foreclosure or a loan mod. A well informed one can help you decide but a realtor can only help you with a short sale.
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Thu Oct 22, 2009
I would suggest talking with a Realtor and looking at all options:
1. Loan modification
2. Short sale
3. Deed en lieu
4. foreclsure

Then discuss with a CPA regarding tax implications of each.

In most cases to qualify for a short sale your credit will be in a world of hurt. The latest guidelines from Fannie Mae are a two year wait to purchase a new home.
0 votes Thank Flag Link Wed Oct 21, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
I would suggest contacting an attorney who specializes in these transactions. For instance, not everyone qualifies for a short sale or deed in lieu. It all depends on their financial circumstances. There is a firm,
The Seymour Law Firm, who specializes in this. There phone is 203-924-6700. More info is needed.


Candace Lipira
203-856-8501
CandaceLipira@prudentialct.com
0 votes Thank Flag Link Wed Oct 21, 2009
property has been on the market since April of 2008
0 votes Thank Flag Link Wed Oct 21, 2009
A short sale is better for your credit than a lieu. A deed in lieu is about the same as a foreclosure on your credit. Plus a lender is not likely to consider a deed in lieu until the home has been listed for 90 days first.
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Wed Oct 21, 2009
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