• Search
    • Search All Listings
    • Our Featured Listings
  • Neighborhoods
  • Buyers
    • New Listings Watch
    • Lake Tahoe Market Reports
  • Sellers
    • What’s My Home Worth
    • Lake Tahoe Market Reports
  • Blog
  • About
    • About Brent Johnson
    • About Dana Contino
    • Testimonials
  • Contact
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Search
    • Search All Listings
    • Our Featured Listings
    • Neighborhoods
  • Buyers
    • New Listings Watch
    • Lake Tahoe Market Reports
  • Sellers
    • What’s My Home Worth
    • Lake Tahoe Market Reports
  • Blog
  • About
    • About Brent Johnson
    • About Dana Johnson
    • Testimonials
  • Contact
Menu
(530) 416-2625 | Login / Register
  • Search
    • Search All Listings
    • Our Featured Listings
    • Neighborhoods
  • Buyers
    • New Listings Watch
    • Lake Tahoe Market Reports
  • Sellers
    • What’s My Home Worth
    • Lake Tahoe Market Reports
  • Blog
  • About
    • About Brent Johnson
    • About Dana Johnson
    • Testimonials
  • Contact
Menu
You are here: Home / Uncategorized / Why Selling as a Short Sale is Better Than Foreclosure

Why Selling as a Short Sale is Better Than Foreclosure

July 21, 2009 by bjohnson Leave a Comment

There has been a lot of questions about how short sales and foreclosure will affect homeowners in the future. Credit Financial Planning Inc., www.creditfixed.com provided some great information for homeowners that are deciding weather to short sale their homes or let them go to foreclosure.

Here are some of the advantages of selling your home as a short sale instead of letting your home be foreclosed on.

  1. Fannie Mae Guidelines for Primary Residence Loans- If you short sale your home, you will be eligible for a Fannie Mae backed mortgage after 2 years with no restrictions. With a foreclosure eligibility would be after 5 years with restrictions, and after 7 years with no restrictions.
  2. Fannie Mae Guidelines for Non Primary Residence Loans- An investor who has done a short sale is eligible for  a Fannie Mae backed mortgage after 2 years. An investor who has had a property foreclosed on cannot get a Fannie Mae backed loan for 7 years
  3. Credit Score- With a short sale, late payments will show up as short as 12 to 18 months after the completion of the short sale. Credit scores can be affected negatively 50 to 100 points depending on how the lender reports it. With a foreclosure, the credit score is typically affected for at least 3 years. Credit scores will be negatively affected between 200 and 300 points.
  4. Credit Application Questions (Form 1003)- There are no questions on the credit application regarding a short sale. If you have had a foreclosure you will need to answer “Yes” to question C, section VIII: Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?
  5. Credit History- Short sales may or may not be reported on a credit history depending on how the lender reports it. A foreclosure will remain as a public record for 10 years or more.
  6. Security Clearance- A short sale does not usually raise red flags regarding security clearance. With a foreclosure, security clearance will usually be revoked.
  7. Deficiency Judgement-On a short sale, this is a negotiable issue between the seller and the lending institution. With a foreclosure there are no negotiations between the homeowner and the lending institution. It is up to the lender whether to file a deficiency judgement.
  8. Deficiency Judgement- If there is a deficiency judgment on a short sale, the amount is usually lower. The foreclosure process usually will cost the lender more, hence resulting in a larger deficiency judgment if the judgment is filed.

Selling your home as a short sale can be a good option for homeowners who have a financial hardship instead of foreclosure. If you are considering selling your home as a short sale, the first step is to contact your CPA and attorney to make sure that it is the best option for you. The next step is to call Brent and Jill Johnson for more information on how to short sale your home!

Please contact us for more information regarding short sales in South Lake Tahoe. You can also view a current list of bank owned foreclosures in South Lake Tahoe for sale.

Filed Under: Uncategorized Tagged With: bank owned properties in south lake tahoe, Foreclosures in South Lake Tahoe, Short Sales in South Lake Tahoe, south lake tahoe short sales

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

agent image

Brent Johnson Group

Lake Tahoe Real Estate
(530) 416-2625
Contact
New Listing Alerts What's My Home Worth Market Reports

What Clients Say

"We are so grateful to Brent and his team of professionals at Chase International South Lake Tahoe Realty. It was clear from the moment we met that Brent... continued"
- Frank Sutton
All Testimonials
Lake Tahoe vibes & mountain charm! 7302 6th Avenu Lake Tahoe vibes & mountain charm!

7302 6th Avenue Tahoma, CA 96142
4 🛏 | 3🛁 | 2,522 sq ft

Come cozy up under the soaring vaulted ceilings or hit the trails just minutes away. This is Lake Tahoe living at its best! 🤩

DM us for a private tour or more info!

Priced at $1,588,000

#LakeTahoeLiving #TahomaCA #TahoeRealEstate #MountainHome #HomeTour #ForSale #DreamHome #LakeLife #JustListed #LakeTahoe #RealEstate #CaliforniaHomes #LuxuryHome #InteriorDesign
Welcome to 2025 Garmish Court South Lake Tahoe, C Welcome to 2025 Garmish Court 
South Lake Tahoe, CA 96150! 🤩

Experience unparalleled lakefront living in the exclusive Tahoe Keys community. This custom-built 3-bedroom, 2-bathroom home offers modern comforts amidst breathtaking mountain vistas. Enjoy direct access to Lake Tahoe’s pristine waters from your private boat dock, making every day a waterfront adventure! 🏔️⛵️☀️ 

Priced at $1,598,000 

DM us for more details or to schedule a private showing! 💌

#TahoeKeys #LakeTahoeLiving #WaterfrontHome #LuxuryRealEstate #SouthLakeTahoe #TahoeLife #MountainRetreat #LakefrontProperty #DreamHome #RealEstateGoals #TahoeVibes #CaliforniaHomes #LakefrontLiving #HomesForSale #InvestInRealEstate
Welcome to 1992 Piute Street South Lake Tahoe, CA Welcome to 1992 Piute Street South Lake Tahoe, CA 96150

📍 Located in the charming Meyers community, this magnificent mountain retreat offers the perfect blend of comfort and adventure living!

🛏 3 Beds | 🛁 2.5 Baths | 📐 2,078 sq. ft.

Tahoe living at its finest! DM for more info or to schedule a private tour! 📩🏡

#SouthLakeTahoe #TahoeLiving #MountainRetreat #DreamHome #LakeTahoeRealEstate
🏡✨ Just Listed in South Lake Tahoe! ✨🏡 🏡✨ Just Listed in South Lake Tahoe! ✨🏡

Welcome to 1971 Mandan Street South Lake Tahoe, CA 96150—a charming mountain retreat nestled in the heart of nature! 🌲❄️

🏠 6 Beds | 3 Baths | 3,662 Sq. Ft.
🔥 Warm & Inviting Interior
🌿 Surrounded by Towering Pines
🎿 Close to Ski Resorts, Trails & Lake Tahoe

Whether you’re looking for a peaceful getaway or a year-round home, this one is a must-see! 💙🏔️

📍 Tag someone who needs a Tahoe escape!

#SouthLakeTahoe #TahoeLiving #JustListed #MountainHome #LakeTahoeRealEstate
Just listed! 🤩 Welcome to 1935 Hunkpapa Street Just listed! 🤩

Welcome to 1935 Hunkpapa Street in South Lake Tahoe! 

🛏️ 4 bedroom
🛁 3 bathroom 
& 2,047 sq. ft. of luxurious living space 📏😍

This home is the perfect retreat for those seeking both comfort and adventure! 🏠🏔️ 

DM us with any questions or to schedule a showing! 

#SouthLakeTahoeLiving #DreamHome #LakeTahoeRetreat #LakeTahoeRealEstate #LuxuryHome #InteriorDesign #MountainModern #RealEstate #LakeTahoe
Load More Follow on Instagram
What's Your Home Worth? Free CMA

Footer

company logo
(530) 416-2625 |Email
989 Tahoe Keys Blvd.|South Lake Tahoe, CA 96150
DRE# 01802170

sitemap   •   admin   •   ©2025 All Rights Reserved  •  Real Estate Website Design by IDXCentral.com