Home Selling in 43612>Question Details

Pam Tanner, Home Owner in Toledo, OH

What are the positives and negatives of a short sale?

Asked by Pam Tanner, Toledo, OH Fri May 18, 2012

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Forclosure: Credit it not affected forever. "The Fair Credit Reporting Act allows the legal action of foreclosure to remain for 7 years from the date of filing." We've seen people purchase a new home after a foreclosure in 2-3 years. It can depend on the details of the foreclosure.

Also, in most cases they won't go after you for the deficency.


More details on the BOA program:
http://www.trulia.com/blog/molly_hay/2012/05/bank_of_america…

One big catch, you must approach BOA and get approved for the short sale before you have an offer.
0 votes Thank Flag Link Fri May 18, 2012
Pam,
If you have a Bank of America loan, you may be eligible for the Relocation Assistance Program, which provides $2500 - 30k, please feel free to contact me to see if you may qualify.
Shortsale:
The positives are your credit score will be dinged but much less than a foreclosure, the debt relief act is good thru 12/31/12 if the home is your primary residence, in most cases the lender doesn't pursue deficiency Example: You owe 150,000 on your home, it sells for 100,000 the 50,000 deficiency is not collected by you from your lender, they waive deficiency and don't pursue. Depending on what type of mortgage loan you have, you may be able to purchase again in 18-24 mos.
Foreclosure: credit is affected forever, the lender will pursue deficiency

Put this link in your browser, it provides a overview Shortsale vs Foreclosure
http://youtu.be/u7SDwUmEAuU

If you have any questions, or need any other information, please feel free to contact me.
0 votes Thank Flag Link Fri May 18, 2012
Thank you for all of the information. Unfortunately we are stuck with Wells Fargo and we are in that situation of owing 147 and it values at maybe 100 currently. Homes are not selling for what they were purchased. If we were to do a short sale would we be able to purchase another home in the future? What happens while the home is in the short sale process? Will it stay out of foreclosure? Thanks for any information
Flag Sun May 20, 2012
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