Short Sale or Foreclosure? 6 Reasons Why a Short Sale May Be Your Best Way Out

This will begin a 6 part series of the advantages of a short sale over a foreclosure. Here we go:

Reason 1
A home owner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.

A home owner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years. This means that you may be eligible to purchase a home again in 2 years!

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.

So who is this Fannie Mae anyway, and how come she wields so much power?

Well…The Federal National Mortgage Association (FNMA) (NYSE: FNM), commonly known as Fannie Mae, is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.[2]As of 2008[update], Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac) owned or guaranteed about half of the U.S.'s $12 trillion mortgage market. (wikipedia).So, these entities control about half of the mortgage market.

Next up… How do Short Sales or Foreclosures impact your ability to get a future loan with a Mortgage Company?

For more information about loan options that may address your unique situation ask us for a free consultation. You have choices and you need to know what they are. As experienced, licensed Realtors, we are helping home-owners on a daily basis; Our goal is to help families and homeowners minimize their financial and emotional stress during a time where it can be difficult to see the forest through the trees.

THIS SERVICE WILL NOT COST YOU ANYTHING. All meetings are confidential. Know your rights, your options, and be informed of recent legislation that may benefit you. CALL NOW for a free consultation and we will explain your options. Don’t delay, get a fresh start today!Contact Mark Fuller at 916-599-2181 mfuller@GoLyon.com or Jeff Werolin 916-741-9505 jWerolin@GoLyon.com .