Best of Luck,
I do recommend that you work with an attorney with short sale experience - and it is a good idea to work with an agent that has short sale experience if you go that route.
Good luck to you,
Unwavering Commitment to Service, Unsurpassed Results
RE/MAX Real Estate LTD
The Ocean's Six Group
As for short sale vs. foreclosure, I side with short sale.
Francesca Patrizio, Broker Sales Associate
As a perspective tenant applying for an apt. you would be best to be proactive and provide a written explanation of your salutation. Even a bankruptcy can be explained. Provide a reason for your situation. How you maintained your home up until the end. You had little opportunity to resolve your situation due to an employment or health hardship. Just so long you can provide verification of your ability to make current and future payments will certainly go a long way as a human being looking at you eligibility. Shoe how you have reduced your debt load... Show you have paid your credit cards ontime. Show your insurance is always paid on time. Very important factors to determine a persons ability to pay their rent.
But looking at what affects your credit more... Foreclosure is a hard hitter as well as bankruptcy. A short sale really does not show up on your credit report. There is no short sale classification on the credit report therefore banks and reporting agencies use such terms as paid less than agreed. You negotiator should not only negotiate the deficiency but also the way you are reported to a credit agency. That does not mean you require the bank to report your short sale any differently, but when you ask for the approval letter, you will want the bank to provide terminology of paid in full or satisfied and, or paid as agreed with no deficiency or something you can go back to later in about 6 months to negate a credit reporting that shows negative information. Also late payments on a credit report show up stronger than most anything else.
A short sale will affect your rating approx 60-80 points. But late payments can hit you as much as 200 points or more. So not being late is very important. But rarely you find a person doing a short sale who is not late on their payments.
So many of the banks tell their customers "you have to be 60 days late until we can approve a lod mod or a short sale. But this is entirely wrong information and the banks should be held accountable for these actions but they never are.
Most people dont realize they can short sale a home and buy another right away. Circumstances are required but it can be done and I've seen it done. If anyone would like more information I can provide that to you personally... just contact me...
So if you are planning on renting, you are starting in the right direction to plan your situation for the future.
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William F. Troy
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Veltri & Associates Realtors
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There is no clear-cut answer, however, if you're simply asking about TRENDS and an "on the average" sort of answer, I would say the short sale. Someone could be in a short sale situation not necessarily because they can't pay their bills, but because they need to move (say, a job relocation) and their house is worth less than what is owed on it. In the case of a foreclosure, most of the time this is the result of a homeowner not being able to pay their mortgage every month, no matter WHAT the reason. Again, it could be something that is beyond one's control (e.g. a single mom going through a divorce; she may have gotten the house, but she can't afford the monthly payment), but foreclosure does carry a negative connotation to it. In either case, some explanation to the landlord might be in order if asked about it.