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Tom Lyons
Real Estate Expertise
Phone:
925.216.1105
License #:
01111027
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Foreclosure versus short sale - consequences |
Future Home Purchases
A homeowner who loses a home to foreclosure may have to wait 5-7 years to repurchase another home.
 A homeowner who successfully negotiates a short sale will be eligible to repurchase a home in 2 years.
Credit Score
Credit scores can be lowered anywhere from 250-300 points with a foreclosure. The foreclosure will affect your credit scores for up to 7 years.
With a successful short sale your credit scores may fall as little as only 50 points. A short sales affect can be as brief as 12-18 months on your credit report.
 Credit History
A foreclosure will remain on your credit report for 7 years.
A successful short sale is reported as a liability paid, or judgement satisfied, and remains on your credit report for 2 years.
Employment
Employers have the right to check your credit history when you apply for job. A foreclosure, may in many cases, be grounds for reassignment or termination. A foreclosure may prevent you from being considered for a certain job or position.
A short sale is not reported the same way on a credit report and is therefore not a challenge to employment.
Deficiency Judgment
With a foreclosure the bank has the right to pursue a deficiency judgment against you.
With a successful short sale negotiation it is possible to convince the bank to give up any rights for a future deficiency judgment against you.
Seller short sale resources ... click here. Seller resources  |
