Short Sale
Short Sales – A Win-Win Solution
Do you owe more on your house than what it is worth?
Are you struggling with your mortgage payments?
Have you been unable to sell your home?
If you answered yes to any of the above, you’re not alone. In fact, in today’s economy 1 out of 9 houses with a mortgage in the U.S. is in default, and 1 out of 5 houses are transferred via short sale*.
Rather than resorting to foreclosure, a short sale provides you with an opportunity to not only get rid of the large debt you are struggling with, but also saves your credit. Basically, the bank allows the property to be sold for less than what is owed on the mortgage. This is a win for the seller, obviously, but it is also a win for a buyer – if you’re looking to purchase a home, short sales provide you with an opportunity to purchase properties at below market rates.
Work With the Experts
Ocean Real Estate Investments, LLC has been focused on short sales for three years and, in fact, has had 10 short sale transactions in the past quarter alone.
If you’re selling your property via short sale, we will work with the bank to negotiate the deal, and will even put in an offer to buy your property – saving you valuable time (and those months of mortgage payments), time that is normally spent waiting for a buyer.
If you’re interested in purchasing a property, we will also work with the bank to negotiate and finalize the deal. Our persistence and experience ensures that our deals are successful and timely, rather than the typical short sale story of deals falling through or deals taking months and months to be completed.
Regardless of what side of the selling/buying coin you fall on, we will work with you to close each sale in 30 to 90 days, rather than the six months or more that is currently typical for short sales.
The Effect |
A Short Sale |
Foreclosure |
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My Ability to Buy |
As of May, 2008, if you succeed with a short sale on your home, you will be eligible for a Fannie Mae-backed mortgage after only 2 years. |
As of May, 2008, if your property is lost through foreclosure you will NOT be eligible for a Fannie Mae-backed mortgage 4 years. |
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My Ability to Buy a 2nd Home or Investment Properties |
Here again, you must wait a full 2 years before you are eligible for a Fannie Mae-backed mortgage on a 2nd home or investment property. |
Here again, if you lose your home through foreclosure same as above except Fannie Mae will not consider you for an investment mortgage for a full 7 years. |
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To Obtain Conventional Financing |
No definite answers on this one from the major lenders since it is new territory, but most people in the know feel the effect won’t be as bad as a foreclosure will. |
If you can even get approved for a new conventional loan, the odds are you will pay a significantly-higher rate of interest on your loan. |
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On My Credit Score |
In this case, your credit report will only show late mortgage payments. The account will be reported as either paid or settled. Can’t be certain, but your credit score may only go down by 50 points due to a short sale alone. |
A foreclosure is likely to lower your credit score by between 225 and 350 points and remain for up to 10 years. New credit will become harder to obtain and interest will be higher. |
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On My Credit |
A short sale will not appear on your history or have any meaningful effect. |
Your foreclosure will remain on your credit report for 10 years and also be available on searches of public records. |
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If I Need a Security Clearance for My Job |
In itself, a short sale won’t affect your application for a new security clearance. There should be no effect at all. |
Other than a felony conviction or serious misdemeanor, nothing will affect your security clearance as much as a foreclosure. If you already have one, it will likely be revoked. |
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On My Current |
A short sale is not reported on your credit report and should, therefore, be of no effect on your employment at all. |
If you have a sensitive position in a company, a foreclosure which is shown your credit report could get you reassigned to a less sensitive job or even terminated. |
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On Any Future
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Most employers check your credit report before hiring you, but since a short sale is not reported, you won’t have a problem. |
Most employers require a credit check as part of their initial screening process. A foreclosure will be evident and can be extremely detrimental to their decision. |
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On A Deficiency |
Most experienced short sale negotiators aim for the debt being fully paid. And, it won’t be easy to get! |
Most banks in most states have a right to seek a 100% deficiency judgment against a foreclosed borrower. |
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On the Amount of Any Deficiency Judgment |
It’s likely that a deficiency judgment will be less than from a foreclosure, even if the short sale is at a lower wholesale price due to market conditions. |
If a foreclosed home does not sell at auction, it will have to go through the REO process. Due to costs and fees, odds are you’ll owe more in this case. |
Contact Us
Contact us (Fill Up The Form To Your Right) to see how Ocean Real Estate Investments, LLC can help you sell or purchase a short sale property quickly, efficiently, and pleasantly.
Phone: 781.925.5400 ext. 201
E-mail: rocky@oceanrei.com
