How will my credit be affected on a Short Sale, is there any advice you can give me?
Disclaimer: I am not a credit expert and I am responding to you based only on my understanding of the affects on credit. Making late payments on any debt will lower your credit score based on the amount of days you are late on your payment. It is my understanding that on average, a short sale on your credit report is a negative 150 FICO points versus a foreclosure on your credit report is a negative 250 FICO points.
Please note that these figures change on a regular basis. I highly recommend that doing a short sale is better than letting the house go to foreclosure. If your house goes to foreclosure, it will be 5 to 7 years before you can purchase another home. The short sale on a credit report versus a foreclosure shows good intention on your behalf. You took action against the debt and negotiated a settlement versus just walking away. A short sale also allows you to clean up your credit with the possibility of purchasing a new home after 2 years. I do refer you to a credit counselor after selling your home on a short sale.
My friends keep telling me to do a loan modification. Are there any benefits of a loan modification versus a short sale?
The most obvious benefit of a loan modification (loan mod) is that you get to keep your house. Many people want to do a loan mod because they want to keep their house. The drawback on a loan mod is that most lenders will adjust your payment; however, they will not adjust the balance of the loan on the property down to the current market value.
Loan mods are free through the lenders and I would recommend if you are interested in keeping your house that you attempt the loan modification yourself. Please be aware you will have to be very persistent and very patient to go through the extremely lengthy loan modification process.
During the loan modification process, will the lender stop all foreclosure action against me?
I cannot guarantee they will, since most of time once the lender has paid an attorney to do their job, the attorney will continue on with foreclosure process. The lender still has the right to continue with the foreclosure action against you. Many times the homeowner can’t afford the loan modification given to them from their lender.
Should I do a Deed in Lieu of Foreclosure?
Lenders want money not your house. A Deed in Lieu of Foreclosure gives the property back to the first mortgage company who may or may not waive a deficiency judgment. If there is a second or third mortgage on the property, you probably don’t qualify because you cannot provide clear title to the first lender. In addition, if they did take the Deed in Lieu of Foreclosure, you would also receive a deficiency judgment for the second and/or third mortgage. When you received a mortgage on your property you also gave the lender a mortgage note. You promised to pay this debt with or without the property being attached as collateral.
What’s the next step for me?
Take Action Now by calling us at 407-888-3433 or call the Sell Fast Realty Agent who provided you with this Special Report. You can also go online at www.SellFastRealty.com or www.FreeFactsAboutForeclosure.com and fill out the contact information. Please be sure to fill out the form completely for a quicker response. We will contact you personally within 24 hours to tell you how our expert short sale team can relieve your stress….. Our #1 Focus is YOU! I am honored that I can educate you with the true facts about foreclosure. I am sure you have some more questions after reading this Special Report and we look forward to discussing them with you on a personal and confidential call with you.
Kimberlee Frank Broker Short Sale Expert
Kimberlee Frank is known as “The Real Estate Junkie,” for her unique ability to find ways to creatively help buyers and sellers no matter which direction the real estate market is heading. Kimberlee had already worked as a legal administrator for an Attorney, Builder and Broker for 18 years when she began her Real Estate career in 1998. She dotted the i’s and crossed the t’s on hundreds of real estate transactions and thousands of documents, making her an expert in real estate documentation. Kimberlee’s success began in Fenton, Michigan. She specialized in selling, purchasing, renovating, retailing and lease optioning single-family homes. She has helped many sellers get rid of their “headaches” and helped many buyers find their dream homes!
Since 2003, she has specialized in foreclosures and short sales. After realizing how many families were being forced out of their homes due to financial difficulties, Kimberlee had a heartfelt obligation to use her experience to help those families. She has mitigated and closed over 500 short sales with the mortgage companies, saving Sellers from going into foreclosure. In 2006, Kimberlee and her family moved to Florida. She lives in Oviedo and her Sell Fast Realty Office is in Winter Springs, serving residential and commercial sellers and buyers in multiple counties in Central and Southern Florida.
Kimberlee is also a Trainer and Mentor and has created several different “How To” systems on real estate. Her unique strategies continue to educate real estate professionals across the country. If you have a proven system to help others out of hardship, why wouldn’t you duplicate it and share it with as many people as you can? Kimberlee continues to work with this philosophy!
Kimberlee Frank has been featured on ABC, NBC, FOX, CBS as well as Wall Street Journal, Newsweek, USA Today and numerous other publications. She is the bestselling author of “Big Ideas for Your Business” (Advantage Media 2009). She was also selected as the #1 Short Sale Expert by America’s Premiers Experts.
Please contact Kimberlee at her office at 407-888-3433 to schedule a Free Facts About Foreclosure Seminar. She has numerous testimonials from sellers, buyers and other real estate professionals who are familiar with her giving heart. Whether it is 1 person in need or 1,000…..Kimberlee will educate them on real estate and give them a solution with a peace of mind!
Are you unsure what to do with your house? Do you need to educate yourself about your options. Click the following link Free Facts About Foreclosure for more information.
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