Idaho Home Shop Blog

Idaho Short Sales vs Foreclosure Graph

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Written by Yuri Blanco   
Friday, 05 February 2010 18:45

Issue

Foreclosure

Successful Short Sale

Future Fannie Mae Loan Primary Residence

A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.

A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.

Future Fannie Mae Loan– Non Primary

An investor who allows a property to go to foreclosure is ineligible for a Fannie Mae-backed investment mortgage for a period of 7 years.

An Investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae-backed investment mortgage after only 2 years.

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 that asks, “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” This will affect future rates.

There is NO similar declaration or question regarding a short sale.

Credit Score

Score may be lowered anywhere from 250 to more than 300 points. Typically this will affect a score for more than3 years.

Only late payments on a mortgage will show and an after sale, mortgage will be reported as “paid as agreed” or “paid as negotiated”, or “settled”. This can lower the score as little as 50 points if all other payments are being made. A short sale effect can be as brief as 12 to 18 months.

Credit History

Foreclosure will remain as a public record permanently, and on a person’s credit history for 10 years or more.

A short sale is not reported on credit history. There is no specific reporting item for a “short sale”. The loan is typically reported “paid in full, settled.”

Security Clearances

Foreclosure is the most challenging issue against a security clearance outside of a serious misdemeanor or felony conviction. If a client has a foreclosure and is a police officer in the military, in the CIA or any other position that requires a security clearance, in almost all cases clearance will be revoked and the position will be terminated.

A Short Sale on its own does NOT challenge most security clearances.

Current Employment

Employers have the right and are actively checking the credit of all employees who are in sensitive positions. In many cases, a foreclosure is reason for immediate reassignment or termination.

A short sale is not reported on a credit report and is therefore not a challenge to employment.

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 therefore not a challenge to future employment.

Deficiency Judgement

In 100% of Foreclosures (except in those states where there is no deficiency), the bank has the right to pursue a deficiency judgment.

In some successful short sales, it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner.

Deficiency Judgment (amount)

In a Foreclosure, the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.

In a properly managed short sale, the home is sold at a price that should be close to market value, and in almost all cases will be better than REO sale resulting in a lower deficiency.



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Treasury sets guidance to simplify "short sales"

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Written by Yuri Blanco   
Wednesday, 02 December 2009 16:24

The U.S. Treasury on Monday, November 30th 2009, set long-awaited guidance on a plan for mortgage companies to speed "short sales" of homes and other loan modification alternatives to stem a rising tide of foreclosures.

The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury's website.



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Short Sales in Idaho, Idaho Short Sales, Idaho Short Sale Specialist

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Written by Yuri Blanco   
Wednesday, 02 December 2009 16:04

Idaho Short Sales

The Idaho Housing market has picked up; great news right? Although that is great news, prices still remain at an all time low and many homeowners still owe much more on their home than what the home could be sold for in today’s real estate market.  

If you find yourself in a situation where you MUST sell your home and you are one of the many homeowners upside-down in value there are 2 options:



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What do real estate designations mean?

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Written by Yuri Blanco   
Tuesday, 16 June 2009 10:03

What do the letters after a REALTOR®’s name mean?

GRI? CRS? E-pro? What do these mean?

The letters after a REALTOR’s® name proudly show the designations a REALTOR® has earned to further their professional development. To earn a designation, a REALTOR® has taken coursework and demonstrated specific skills, performance and knowledge in a particular area of the real estate industry. To serve today’s consumers, REALTORS® need to be strong generalists and specialists. Designations are one way practitioners develop specialized skills that help the industry thrive. Designations also help practitioners demonstrate to their clients their commitment to professional development. I am always looking to improve my personal knowledge to serve my clients and community with the highest level of professional service. I personally have earned my GRI designation and am currently working on obtaining my Associate Brokers license. Below are the individual abbreviations, logos and description of designations. For more information on the Idaho Real Estate Market please call me (208)899-3352.



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Welcome to the Idaho Homes Blog

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Written by Yuri Blanco   
Wednesday, 20 May 2009 12:32

Welcome to the Idaho Homes Blog, where I'll be discussing national and local real estate news and trends that affect Idaho home buyers here in the Boise area. The Treasure Valley is a great place to live, and you can search the entire Intermountain MLS right here on this site using our state of the art Idaho map search and advanced MLS search tools.

Questions? I'd be happy to help! Give me a call anytime:

Yuri Blanco
(208) 899-3352
yuri@idahohomeshop.com


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RE/MAX Executives
46 Eagle River Street Suite 130
Eagle, ID 83616