Short Sale Versus Foreclosure – Costa Mesa Short Sale FAQs
If you are facing foreclosure, you may be trying to decide whether you should try to do a short sale on your Costa Mesa home or just allow it to go to foreclosure.
As you are making this decision, it is important to understand what the differences are between the two and what the results might be for each.
- Future Home Purchase
– The time frame to be able to purchase is typically significantly less with a short sale than foreclosure.
– On a Fannie Mae loan it coule mean the difference between 2 and 7 years.
– On a loan application, one of the questions is have you had a foreclosure in the last 7 years. There is no question about a short sale.
- Credit History
– A foreclosure remains on the public record for 7 years.
– There is no public record for a short sale.
- Credit Score
– Typically the effects of the short sale last for a shorter period of time than those of a foreclosure.
- Future Employers
– Many potential employers run credit, and short sales don’t show up, unlike foreclosures, on credit.
- Security Clearance
– Foreclosures can be an issue for many security clearances thought the same is generally not true with a short sale.
- Deficiency Judgments
– A lender may obtain a deficiency judgment on a foreclosure.
– Under California law, under most circumstances a short sale lender cannot pursue a deficiency.
If you would like a free, confidential consultation about your individual circumstances, please contact Christine Donovan at 714-319-9751 to schedule one today.