Unfortunately, even here in Carmel and Fishers Indiana, statistics show that most people ignore an unfriendly letter or call from the bank after a missed or late payment(s).  Take action now before it’s too late and the bank takes over the property.  One solution to this difficult situation is a real estate Short Sell.  A Short Sell is a case where a bank can avoid an expensive foreclosure by accepting an offer for an amount less than what is owed on the property prior to an expensive foreclosure.  For the owner of the property, a short sale is an attractive alternative to a foreclosure, which can be personally and financially devastating. 

 According to The Distressed Property Institute, LLC the ramifications of a foreclosure include:

  • Current Fannie Mae Loan rules prohibit another mortgage for 5 years after a primary residence foreclosure and 7 years for an investor property. 
  • Interest rates can be increased due to risk for a purchase as it is now noted on the application if there has been a foreclosure in the last 7 years
  • Credit scores could be lowered 250 to 300 points for over 3 years and will remain public in credit history information for 10 years or more. 
  • A challenge to Security Clearance and a negative fact that may be available to an employer.
  • The bank has the right to pursue a deficiency judgment (loss) due to foreclosure.

 Alternatively, the benefits of avoiding foreclosure through a short sale:

  • Fannie Mae loans potentially can be gained in as little as 2 years.
  • Credit scores will indicate only late payments and after sale the property will show paid or negotiated, which may lower credit scores as little as 50 points if all other payments are made and credit score dips can be limited to 18 months.
  • A short sale is not reported on credit history like a foreclosure, it will show paid or settled.
  • Most Security Clearances will not be challenged.
  • In some cases the lender can be convinced to give up the right to pursue a deficiency judgment (bank loss).

 Armed with this information, it is easy to see why you would want to sell your property prior to foreclosure by gaining insight from expert REALTOR with the proper Short Sale training.  Be ready to step through a streamlined process that will enable you or your friends to move out from a difficult financial situation.  Take action now!  Call me or another Certified Distressed Property Expert.  Time is critical to avoid a foreclosure!