Florida Foreclosure Help in Hollywood, south Florida short sales

Factor

Short Sale

Foreclosure

Effects on your Credit

The short sale will only affect your score by 30-50 points on average. The late payments are what cause your credit score to plummet. Each missed payment can lower your credit score by 30+ points. A short sale is a SALE and in many cases shows up on your credit report as lien satisfied or paid in full.

In the real world, unless you pay cash for everything, your credit score is the most important asset you have. Once a foreclosure damages your credit, usually to the tune of 200-300 points, it will take a long time to fix. A foreclosure is not a sale it is a REPOSSESSION, adversely affecting your credit for a minimum of five years and remains on your credit history for 7 to 10 years and on public record indefinitely.

Employment

Since a short sale shows up as a sale, it should not affect your present or future employment.

A foreclosure however can affect your employment. If your employer requires fiscal responsibility, your current or future employment may be in jeopardy. Currently, there are no laws protecting you from being terminated or discriminated due to your foreclosure.

Future Loan – Conventional

Since your credit has been damaged far less than it would have due to a foreclosure, the prospects of a conventional loan in the near future are much more obtainable through credit repair.

The standard loan application form 1003 requires you to disclose a foreclosure dated back for the last 7 years which will drastically affect the interest rate you will receive if you even qualify for a loan.

Future Loan -
FHA

New FHA guidelines allow you to apply for a new FHA loan just 2 years after a short sale.

With a foreclosure on your record, you will be ineligible for a FHA loan for a minimum of 5 years. That is if you even qualify for a loan.

A short sale approval with no deficiency, and a paid in full status is an advanced negotiation tecnique a short sale expert can obtain

A lien holder can actively seek a deficiency judgment and garnish wages. Instead of “walking away” a foreclosure may be the beginning of greater problems

Security Clearance

Because you have shown initiative by keeping in constant contact with your lenders, you stand a far better chance of retaining your security clearance. It is also beneficial to let your chain of command know about your financial situation. This transparency will help during the reinvestigation of your security clearance.

If the (re)investigation shows a foreclosure it could cost you your security clearance.