A large percentage of properties on the market, and recently sold in the Boise Area are Bank Owned (Forclosed Properties) or Short Sales (Amount due to lender exceeds the value of the property).  If you are faced with hardship dictating that you must let your home be repossessed by the lender or sell for less than the amount owed, perhaps the following will help with your decision:

Foreclosure

1     Ineligible for many real estate loans for 5-7 years

2     Have to disclose foreclosure on loan applications for 7 years

3     Credit scores can be lowered from 250-300 points and will affect score for 3 years

4     Remains as public record for 10 years

5     Security clearance can be revoked

6     Credit reports for current and future employment can cause termination or non-hire

Short Sale

1     Eligible for new real estate loan after 2 years

2     No declaration of short sale on loan applications

3     Credit scores can be affected as little as 50 points for as brief as 12 to 18 months

4     Not reported on credit history therefore not public record   

5      A short sale on its own does not challenge most security clearances

6     Not reported on credit reports and therefore not a challenge to employment

In both cases lenders have the right to file “Deficiency Judgment” (collect the difference in the amount received and amount owed).  In some sucessful short sales it is possible to convince the lender to give up that right.

This is just a brief summary of the effects that a foreclosure or short sale might incur.  Please call or e-mail as soon as you foresee a problem arising and we can research any alternatives that may be available to you.

http://www.shirleyamick.com

Next post will cover qualifications of a “short sale”