Agent Profile
My job is service...service to you and your real estate transactions! How can you benefit from my 25 years of experience and expertise? What can I offer to make the process more productive?
* Current information on available housing...comparative and competitive market pricing and analysis
* Daily involvement in the local real estate marketplace.
* Thorough, comprehensive knowledge reflecting years of helping others complete their real estate business.
* Extensive network of professional resources to make the process as smooth as possible.
My commitment is to you! Being available to you...returning your calls...answering your questions...addressing your concerns...respecting your money...matching your timeline...meeting your expectations...helping accomplish your real estate goals!!
JANEESE JACKSON: 503-709-0802 or jj@janeesejackson.com
Depeche Mode: “The Bottom Line”
So, what if you simply owe more than your home is worth? What if, due to the changing market conditions or changes in your personal situation you are forced to make a decision to opt for attempting to negotiate a “short-sale” (sell for less than is owed on the property) or a “foreclosure” (the lender steps in to repossess your property) or a “strategic default” (a homeowner can afford to make payments, but opts to stop because the loan amount is more than the value of the property)? Here’s the beef on how these decisions affect your credit standing and ability to borrow again on a home. (Remember to check with you accountant, CPA and/or attorney prior to making any decisions that might affect your long-term financial standing).
Generally speaking, a foreclosure will have a more dramatic negative impact on your credit score than a short sale. Foreclosure will lower your score anywhere from 250 to over 300 points and affect your score for over 3 years. Only late payments on a mortgage will show up on your credit score, a successful short sale will be reported as “paid as agreed”, “paid as negotiated” or “settled”. Of course, the “catch” here is that you must be late on your payments for most banks to even discuss a short sale. This will lower the score as little as 50 points if all other payments are being made. A short sale’s effect can be as short as 12 to 18 months. Foreclosure will remain as a public record on a person’s credit history for 10 years or more. A short sale is not reported on a credit history. Foreclosure can have a challenging affect on your security clearance. If someone has a foreclosure and is a police officer, in the military CIA or other position that requires a security clearance, that clearance could be revoked and the position terminated! On its own, a short sale does not challenge most security clearances.
Employers do have the right to check the credit regularly of all employees who are in sensitive positions. A short sale is not reported on a credit report and is therefore not a challenge to employment. Many employers are now requiring credit checks on all job applicants. A foreclosure could challenge employment.
In 100% of foreclosures (except in states where there is no deficiency judgement) the bank has the right to pursue a deficiency judgment. In some short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner. My understanding is that the state of Oregon only allows “Deficiency Judgments” on only 2nd mortgages or lines of credit (again I would check with an attorney). However, Fannie Mae stated that they will pursue deficiency judgement in states that allow this by law.
A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage, FHA, VA or Conventional mortgage for a period of 5 years. With a short sale, it could be as little as only 2 years for Fannie Mae, 3 years for FHA or VA and 2 years for conventional financing. An investor will find that they can get another Fannie Mae or conventional loan for 7 years, whereas you can get a Fannie Mae backed investor loan again after a short sale in only 2 years. Fannie Mae recently announced that they will make people who can make their payments and who choose to do a strategic default wait 7 years before they are eligible for a Fannie Mae loan. Furthermore, Fannie Mae stated that they will pursue deficiency judgments in states that allow this by law.
Anyway, hopefully it never comes to that for any of us. But, a little knowledge can help in the decision as to how to proceed.
About the Author | Janeese Jackson
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