Gerald Romine's Politically Incorrect News
A question I'm commonly asked is what effect does a short sale, deed in lieu of foreclosure, or foreclosure have on my credit and when can I buy another house?
Believe it or not a short sale, deed in lieu of foreclosure, and foreclosure all have roughly the same impact on your credit score. In other words your credit score is going to be hammered.
Most new loans are resold to Fannie Mae and Freddie Mac and beginning August 1 Fannie Mae generally will not buy loans to borrowers involved in a short sale in the last two years. A deed in lieu of foreclosure is 4 years. A foreclosure is 5 years.
Although your credit score will be treated the same your ability to buy a house will vary greatly since most lenders sell their loans to Fannie Mae and Freddie Mac.
Why Do Short Sales Get The Best Treatment
Short sales are the preferential loss to lenders because it saves them the trouble of having to sell the house!
This is POWERFUL information because it gives owners an incentive to work with you for completing a short sale because they have a better chance of buying a home in two years instead of 5 years if the home is foreclosed on! And when you can complete short sale packages in minutes negotiating short sales because easy and routine.
>>> To learn the rest of the story and discover another important real estate investing lesson, follow the link below or copy and paste it into your browser:
http://www.geraldromine.com.Now Go Buy A House!Gerald Romine
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