I have a phone conference scheduled with a short sale seller...we have had lengthy discussions, left literature, referred blogs and websites to help him gain a better understanding of the whole process....and of of course, are available for phone calls whenever necessary. I still hear the "When we buy our next home...." creeping into the conversation. Oh YICKS !
We have explained over and over that more and more the very first thing a lender will look at is a credit score....the credit score was already dismal when we met after 2 years on the market with an over priced house....and debts and taxes continuing to accumulate. While a short sale is an improvement over a foreclosure...it does not "forgive your past credit sins" and....will in fact add to the dings already in your credit score. Add...but not as much or as long as a foreclosure action. That is the word for now...Could that change ? Sure....the financial requirements and lender guidelines, loan programs change all the time. When we get lender questions...we refer them to lenders....know what you don't know....
If you think Mr./Ms Short Sale Seller that you will be buying a home soon....at this point, we can almost safely say "Not for several years". So if you are stashing cash for that down payment thinking this will be a miraculous and easy transition...sorry...very sorry....but it doesn't work that way. It is like a physical illness...you didn't get it over night...you won't fix it over night...adjust your thinking...be realistic. Better days will be ahead....but a new house.? Not just yet.
If you or someone you know, is behind on their mortgage payments...anywhere in the country, have them give us a call...toll free: 877-525-0563 or locally: 414-525-0563 and we will be happy to help or refer them to an expert in their area,
Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS
