• Foreclosure Sellers will take a hit of between 200 to 300 points, depending on the overall condition of credit of their credit.
• Short SaleThe effect of a short sale (assuming that the sellers are more than 60 days late) on a seller's credit report is the same as that of a foreclosure.
Waiting Before Buying Another Home
• Foreclosure or Deed-in-Lieu of ForeclosureA seller who wants to buy another home after a foreclosure will need to wait 24 to 72 months before a lender will consider making another loan o them.
• Short SaleSome agents say the good news for short sale sellers is the wait is much shorter before buying another home, and new Fannie Mae guidelines make that a true statement.
Short Sale / Foreclosure Deficiency Judgments
The bad news is that a Dallas Real Estate seller could be subject to a deficiency judgment for the difference between the loan amount and the amount paid. In general, a foreclosure sale wipes out the right to a deficiency. Some states have laws regarding personal guarantees, which could also result in a deficiency judgment, if the home owner is held personally liable for loan repayment.
If you're a seller trying to decide whether to let a home go through a Dallas Foreclosure versus attempting a short sale, salvaging your credit may not be an advantage to doing a short sale, if you've fallen behind in your payments. There is no credit score advantage for a delinquent borrower on a short sale over a foreclosure." The only advantage is being able to buy another home within two years over the three- to five-year period required for foreclosures. You may want to consult a Dallas Realtor or seek legal and tax advice before making that decision.
