Frequently Asked Questions
Q. How does a foreclosure and short sale affect my ability to get a real estate loan in the future
A. A foreclosure will make a borrower ineligible for a Fannie Mae mortgage for 5 years on a primary residence. A homeowner who closes a short sale will be eligible for a Fannie Mae mortgage in 2 years.

An investor who allows a property to go through foreclosure is ineligible for a Fannie Mae non-owner occupied mortgage for 7 years. A short sale will prohibit an investor from a Fannie Mae mortgage on an investment property for 2 years.

Q. How does a short sale and foreclosure report on my credit?
A. Foreclosures can show up as a FORECLOSURE. This could report for as long as seven years. Foreclosures will usually have to be disclosed on any new loan application in the future. A short sale usually reports as a SETTLED DEBT. This could have less impact on your credit, but please consult a credit company for more information.

Q. How are non-owner occupied properties affected when short selling them?
A. For short sale negotiations, non-owner occupied properties are handled in the same way as owner occupied properties

Q. Can I short sale multiple properties?
A. Yes, but we will still need the short sale packages completely filled out for each property. However, the supporting documentation such as the hardship letter, financial statement, bank statements can be reproduced for each package.

Q. Can I short sale on commercial and multi-family Properties?
A. Yes, same packages must be filled out.

Q. I'm a real estate agent and am at risk of losing my home through a foreclosure. Can I list my own home as a short sale?
A. In a short sale, the seller is not allowed to benefit financially from the transaction. Therefore, there is no advantage to listing your own house. It is our recommendation that you have another agent handle the listing and sale of your property.

Q. When should I start my Short Sale?
A. It is best to begin a short sale when you realize you can no longer afford the mortgage, so that your property can be marketed properly and you can receive the highest possible offer. The earlier you start, the higher our likelihood of success. Contact us to see if you have enough time.