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Foreclosure VS Short Sale Homeowner Consequences Part 1
This is a 2 part post that covers facts regarding foreclosures and short sales and the consequences that come with it.
Foreclosure
FUTURE LOANS
A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.
An investor who allows a property to go into foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.
On any future loan application a prospective borrower will have to answer “YES” to question C in Section VIII that asks: “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” which will affect future rates.
CREDIT
A credit score may be lowered anywhere from 250 to over 300 points. Typically, foreclosure will affect a credit score for over 3 years.
Foreclosure will remain as a public record on a person’s credit history for 10 years.
EMPLOYMENT
Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure, in many cases, is ground for immediate reassignment or termination.
Foreclosure is the most challenging issue against a security clearance positions outside of a conviction of a serious misdemeanor or felony. If a person has a foreclosure and is a police officer, in the military, in the CIA, or any other position that requires a security clearance, in almost all cases clearance will be revoked and position will be terminated.
Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.
DEFICIENCY JUDGMENT
In 100% of foreclosures the bank hast the right to pursue a deficiency judgment. Exception to this rule are states where there is no deficiency.
In a foreclosure the home will have to go through a REO process if it does not sell at auction. In most cases this will result in a lower sales price which will result in a higher possible deficiency judgment on the other hand.
Matthew Sapaula gives certain steps homeowners can do to protect their nest egg and prevent foreclosure. 
Tips for how to get your loan modification approved. What you need to know before calling for a loan modification or a Rate Freeze from your current lender. Loan Modifications are available to all homeowners.
Our services require no fees or any payment, unless we obtain a suitable change in the terms of a clients mortgage obligation.
Facing foreclosure? Call Loan foreclosure services 1-877-87-U-WALK today! http://www.youwalkaway.com for home foreclosure services, loan foreclosure protection, foreclosure attorneys and much more!
Don’t let them take your home. Stop Foreclosure Now! www.StopYour4closure.info
Foreclosure of your home can be avoided if you know the RIGHT steps to take. This excellent ebook gives you all the information you need to keep your home. http://www.StoppingForeclosureGuide.info
Everything you ever wanted to know about Home Foreclosures but didn’t know who to ask!
http://rescuemyloan.com helps with loan modification. It offers foreclosure prevention assistance and help to stop foreclosure.
Bankruptcy or Foreclosure depends on whether you want to keep your home or not. If you want to keep your home then Chapter 13 would be a good option for you. Learn more about what you face when making this decision or what method of foreclosure you should pursue.
