Your Credit Score
A credit score may be lowered anywhere from 250 to over 300 points in a foreclosure.
Typically a foreclosure will affect credit score for over three-four years.
Only late payments on a mortgage will show and after a short sale, mortgage will be reported as paid or negotiated. 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 brief as 12 to 18 months.

Your Credit History
Foreclosure will remain as a public record on a person’s credit history for ten years or more. 
A Short sale is not reported on a credit history. There is no specific reporting item for ‘short sale.’ The loan is typically reported
as, ‘paid in full, settled.’

Your Future Loan with any Mortgage Company
On any future 1003 application, a prospective borrower will have to answer
YES to question C in Section VIII of the standard 1003 loan application that asks “Have you
had property foreclosed upon or given title or deed in lieu thereof in the last
seven years?” this will affect future rates.
There are no similar declarations or questions regarding a short sale.

Future Fannie Mae Loan – Buying a Primary Residence
A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of five years. 
But after a short sale a homeowner can still buy a home.
A successfully negotiated and closed short sale will be eligible for a Fannie Mae backed mortgage only after two years.

Future Fannie Mae Loan – Buying a Non-Primary
An Investor who allows a property to go into foreclosure is ineligible for a
Fannie Mae backed investment mortgage for a period of seven years. 
An investor who successfully negotiates and closes a short sale will be eligible
for a Fannie Mae backed investment mortgage after only two years.

For Your Security Clearances
Foreclosure is the most challenging issue against a security clearance
outside of a conviction of a serious misdemeanor or felony. If a client has a
foreclosure and is a police officer, in the military, in the CIA, Security, or
any other position that requires a security clearance in almost all cases
clearance will be revoked and their position will be terminated. 
A shortsale alone does not challenge most security clearances.

Your Current Employment
Employers have the right and are actively checking the credit regularly of all
employees who are in sensitive positions. A foreclosure in many cases is grounds for immediate reassignment or termination. A short sale is not reported on a credit report and is therefore not a challenge to employment.

Your Future Employment
Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment. 
A short sale is not reported on a credit report and is therefore not a challenge to employment.

Your Deficiency Judgment
In 100% of foreclosures (except in those states where there is no deficiency), the bank has the right to pursue a deficiency judgment. 
In most successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner.

Additional benefits of a short sale:
Service fee is FREE to homeowner(s).
Homeowner gets to stay in their home during the short sale process timeline.
Lenders may offer relocation money to a homeowner.
Stress-free credit and financial future.
And most of all...Regain peace of mind!

Today's real estate as we all know, is a Seller's Market.

Prior to 2013, the real estate market in most areas were inundated by foreclosures and short sales. There were so many homes to find and so many choices to make for the current home buyer. Most home owners and former real estate investors who bought a couple of years ago, had frantically unloaded most of their real estate inventory. On top of it, the nearby home for sale could be another foreclosure or short sale. Home prices had not only gone down considerably, but there were more inventories of unsold short sale homes that had clogged the market.

So is there hope for the regular home seller?

Yes!

The first quarter of 2013 ushers in with a decline in home listing inventories and a growing demand for more homes. The real estate market is now turning into a hot seller's market and this is good news for regular home sellers. Regular sales are still very much sought after by most real estate agents and buyers. There are more buyers now who have grown familiar with the long wait and unpredictability of short sales. Foreclosures, have almost disappeared nowadays, due to the fact that home buyers are competing with investors or all-cash buyers.

Some home buyers have grown weary of losing out on investors and all-cash buyers who find foreclosures quite attractive. Also, most foreclosures may not even qualify for a FHA loan program due to the condition of the abandoned property, as most distressed homes have deferred maintenance or in disarray.

This is the niche for most regular home sellers.

Home buyers who does not have the patience, nor stamina to compete with hundreds of investors out there vying for short sales and REOs, are going for regular sales.

First thing to remember, is make sure to hire an experienced real estate professional who can assist in the home selling process.

This is where experience, negotiation skills, excellent marketing strategies, knowledge of current real estate market trends, and county/city selling mandatory requirements becomes very valuable.

An experienced real estate agent can determine the right pricing and marketing strategy in order to sell the home in a shorter time. The presence of a specialist can also expedite the sale much quicker, and less risky for the average seller. A local and experienced real estate agent can help sellers in making sure that all county and city selling requirements are complied to before marketing or selling a home.

Also, most real estate agents have a network of fellow agents and regular buyers, as well as a variety of marketing venues to give maximum exposure to the subject property. When negotiating with buyers, it is best to leave the headaches to the specialist, preferably a Realtor, who have years of training and experience in the selling process.

Some basic steps in selling a home:

1. Hire a licensed and qualified real estate agent

2. Prepare the home, by removing all unnecessary clutter. Clean the home as much as possible. Make some necessary repairs, if need be.

3. Hire a Home inspector or Pest Control inspector if necessary. Who to hire? Your agent can advise you on this.

4. Try to listen to good advice and recommendation from your real estate agent.
Real estate agents are specialists in the field of selling real estate. Some sellers seem to know better than the specialist, and this often makes the marketing process stressful, and may delay getting your home sold! If by any chance, the seller does not feel confident of the real estate agent's advices, then hire another agent!

Always remember, hire a real estate agent that you are comfortable working with. This will eliminate needless headaches, and stress in selling the home!

Tips to Buyers - In a Seller's Market!


The real estate market recently shifted in 2013 in favor of the seller. Yet as a buyer in today's market, it is still necessary to know your game before purchasing a home.

After 2008 buyers controlled the market and we saw declining prices and over supply of inventory. At the start of 2013, the real estate market has become more favorable to sellers and we are now seeing the result of that as evident of the prevailing bidding wars. Sellers can now set any asking price and have their home sold within a few weeks. This has naturally caused buyers and many industry insiders to state that the real estate market may be heading towards a mini housing bubble. This is not really the case as what we are seeing is more of an adjustment to reflect the current state - more demand but little supply.

One thing that is a direct result of this is the fact that home buyers and investors who are competing for fewer homes have caused what we may call bidding wars and thus higher home prices.
This is why hiring a real estate professional is crucial in today's seller's market. The real estate agent can spot the great deals when they come up in the market. A real estate agent will also conduct the market research necessary to strategize the winning bid for the buyer. As real estate professionals, they have the experience and market savvy as well as the knowledge to negotiate effectively, to ensure a successful real estate transaction. This should be a refreshing thought to those who have been searching in the market for some time and have yet to find that perfect home.

Basically, with loan rates at all time low, this is still the perfect time to buy a home.

So how can you be ready to grab that dream home when it comes up?

One thing is to plan in advance, and make sure that your financial picture is in focus and find out your credit score. Repair it if necessary.

Get pre-approved for a mortgage

There are many options out there still. One of the loan options are FHA loans that can provide loans to home buyers at only 3.5% down payment. Check with a FHA approved Broker or Loan Officer for current rates and guidelines. FHA loans are a good resource for first-time homebuyers, and buyers who may not have a large source of downpayment.

FHA loans also protects the home buyers in a way - as they are very concerned with the condition of the home. FHA loans have some strict guidelines in the condition and proper building code compliances of the subject home. The subject home must meet the FHA guidelines prior to approving a loan.

There are other loan programs, provided by some cities or counties, to assist first time homebuyers or their employees who would like to purchase a home within their jurisdictions.

And once again, the next thing to note, is to find a reputable licensed real estate agent who can help in the home buying process.

With the assistance of a real estate agent, the home buying process becomes fairly smooth and stress-free. The real estate agent can recommend a reliable and experienced loan officer, who can also help the buyers in advance in procuring a loan pre-qualification, or even, a loan pre-approval.

But remember - always try to work with an experienced agent that is familiar with the area. Also, try to find a Realtor, or someone who is a member of the California Association Of Realtors. These real estate agents are not only licensed but are well versed in the code of conduct and ethics that every professional real estate consultant should know or adhere to.

A good real estate agent can do "due diligence" for the home buyers - making sure that all things are disclosed about the property, order inspections, if necessary, negotiate and conduct contract administration, and most of all, making sure that the escrow process rans smoothly, and hassle-free!

A hard-working real estate agent or broker, can make a buyer's home search an easy one. Agents have the tools and resources to help find the ideal home in a much shorter time. Agents also have the expertise in their own respective market areas, and are knowledgeable of the current real estate trends and new incentives for home buyers.

There are so many advises and recommendations one has to remember in buying a home.

An experienced real estate professional can make it easier and smoother, and this will take the stress out of home buying.

But for the home buyers, there are 3 things to remember....Bottom line - when buying a home, it's always....

Location, Location, Location!