After previous mortgage difficulties, owning a home in the near future will depend on your loan eligibility, which is severely impaired by foreclosure. A successfully negotiated short sale will allow you to be eligible for a Fannie Mae backed loan in only two years, as opposed to five years after a foreclosure.
In Pennsylvania, when attempting to acquire a mortgage through another company, your loan application will ask whether you've had a property foreclosure in the last seven years. These applications do not ask about any past short sales, meaning if you have avoided foreclosure through a short sale, your chances of securing a future loan with lower interest rates are substantially better.
Also, you can immediately apply for an FHA loan after a successful short sale, assuming you are current on your mortgage payments before the sale. If you are not current, you will be eligible after just three years. If you want to determine your eligibility for this process, contact us as soon as possible
Your Future Credit
When facing the possibility of foreclosure in Pennsylvania, your credit score is also at stake - something that has become a stronger factor in lenders' decisions to provide loans, low interest rates, credit cards, etc.
A short sale, by itself can lower your credit score by as little as 50 points, as opposed to anywhere from 250 to over 300 points in a foreclosure. In addition, a drop in credit due to a short sale can be recovered as quickly as one year, while a foreclosure will affect your credit for at least three years.
Your credit history, which is also taken into account for loans, does not keep record of past short sales, but a foreclosure will be publicly recorded for at least 10 years.
Pennsylvania Short Sale VS. Foreclosure
Place Your Confidence in a Pennsylvania Short Sale Expert
With the right assistance, the stress of facing foreclosure becomes manageable. CDPE-designated agents have received the knowledge and training necessary to assess all possible foreclosure alternatives and pursue homeowners' best options. A CDPE-designated agent attends several days of intensive, thorough training on foreclosure avoidance and how to negotiate short sales efficiently and ethically. The highest regarded CDPE logo means you are working with the most informed, up-to-date resource available.