Can i get a mortgage after a short sale in Eagle Vail
Dont Allow yourself to Be Misinformed About the Difference Between Foreclosures and Short Sales in Eagle Vail Colorado!
Both foreclosures and short sales are fairly new to the Eagle Vail, Colorado area. Foreclosures in Eagle Vail, Colorado have become a fact of life as have foreclosures are nationwide. The truth of the matter is that, for most homeowners, not even a loan modification is an option. When in a distressed property situation and considering all your options how do you decide which is best, a foreclosure or a short sale? While short sales are the new buzzword and are being tried by many, its hard to determine is the best option. With the home owners best interest in mind, I believe that the benefits of a short sale are far better than those of a foreclosure. The home owner benefits in no way by letting their property go into foreclosure. The only organizations/people that truly benefit are the listing agents that have made selling bank owned properties, also know as REOs, a main focus of their real estate business.
The following is a brief comparison of foreclosure versus short sales... Foreclosures and short sales will both affect your credit score. A foreclosure has a more significant affect on your credit score. It is believed by some that this can be for as long as three years or more and may lower your credit score by as much as 300 points. A foreclosure may remain on your history for up to ten years or more. Foreclosures benefit the homeowner in no way!
Comparatively late payments will show up on your credit if you choose to do a short sale. Some say your credit score can drop as little as 50-150 points and if a short sale is accepted you may qualify for a loan in as little as two years or less. A short sale may be reported on your history as settled and/or paid in full if the bank agrees to take a short pay and only if the bank agrees to settle paid in full. Banks will not always agree to do a short sale. There are two main things banks will consider while looking at accepting a short sale. They look for long-term hardship and the home owners financial situation.
Considering other factors of your life such as your job situation. On its own, a short sale generally may not affect your employment because of how its reported on your credit report. A foreclosure may be a different. Some employers may check the credit history of a potential employee as some may require credit checks for their new hires. If you have a foreclosure on your record this may jeopardize future employment opportunities. If your profession is in security this may destroy your chance of a security clearance until the foreclosure is removed from your credit history.
In the event of a foreclosure, many banks may retain the rights to come after you for a deficiency judgment. A deficiency judgement is the amount that was owed to the bank on the home that went into foreclosure and what the property is eventually sold for by an REO agent. If a short sale is done correctly and the short sale is accepted by the lender the lender may agree to give up the right to come after the home owner for a deficiency judgment by accepting the short sale settled or paid in full.
Lastly if working with a Broker/Realtor to sell your distressed property, make sure they are able to explain every option available to you to stop a foreclosure. If they arent able to do this then you may want to consider talking to another source that can explain all of your options to you. Keep in mind that no matter how expensive your home is in Eagle Vail, Colorado, a foreclosure is one of the two worse things you can have affect your credit. A short sale may be your best option available to you. You need to also keep in mind that no organization should be asking you to pay for any repairs, closing costs, realtors fees or any other fees associated with the home that is in the foreclosure process. In the Colorado Foreclosure Protection Act it specifically states that nobody should be asking you for money to stop your foreclosure. This includes organizations offering to do short sales, offering to do loan modifications and/or offering to sell your house.
Once a house is foreclosed on that house may sell for below the price they would get from a short sale. If this is the case the deficiency judgement could be significantly higher with a foreclosure. Until the entire process is completed, nobody can guarantee what the outcome will be. When facing foreclosure and if you are considering doing a short sale, make sure you get the best information available to you. You can visit www.shortsalelab.com for free access to a complete set of videos explaining the foreclosure and short sale process.
http://www.avoidforeclosureeaglecounty.com Ray Santillan is an expert in the short sale process and is the Director of the only business that offers a turn-key solution for getting your home foreclosure stopped. He will handle the situation from start to finish, tie up all the loose ends so you can relax and start to rebuild your life. We can stop foreclosure by buying your house.
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