Is there a difference in the impact of foreclosure vs. a short sale when you sell your home? Recently, FICO, the company that produces the credit score used by many lenders to evaluate creditworthiness, offered some surprising answers to these questions – and added some new insights as well. Bad news for high scorers
When you purchase a home on a short sale you are helping a homeowner salvage their credit and dignity and helping them out of a bad situation. You are also preventing a large loss for the bank and.
The new legislation also could be used to prevent the lender from seeking to complete the mortgage foreclosure through a summary judgment procedure or the setting of a mortgage foreclosure sale date. But how the new federal legislation is applied in state court mortgage foreclosure cases is far from clear.
a foreclosure, the credit is damaged by 200 to 250 points, and for up to 4 or 5 years preventing someone from obtaining a government-backed mortgage. It is clearly less. Should I Short Sale My Home? 1 . 2 .
Foreclosures Increase in Big Cities: A Blessing in Disguise? By admin. Economists have recently expressed concerns because foreclosure starts have started to increase in some of the country’s largest housing markets.
You can’t always depend on a Foreclosure Vulture" to tell you they are buying your house on Tuesday, well not if the market is bad. The larger foreclosure firms are good about sending notices even if no response and a default judgment is entered, but this is only a courtesy, not a right. 3. Be careful about the short sale.
A foreclosure dramatically affects your credit score. Fair Isaac, the company that created FICO (credit) scores, drops credit scores from 85 points to 160 points after a foreclosure or short sale. The amount of the drop depends on other factors, such as previous credit score.
If you save your lender money by avoiding a foreclosure, you might be eligible for moving assistance. The home affordable foreclosure alternatives program, for instance, gives borrowers $10,000 in moving money after a short sale or deed in lieu of foreclosure. The program expires at the end of 2016.