Call Us Email Us

Real Estate Information Archive

Blog

Displaying blog entries 1-2 of 2

Short Sales vs. Foreclosures

by Leticia Hixson

short sales offer the homeowner many more benefits than going through a Foreclosure.  In the case of a short sale, the benefits to the homeowner are:

  • Only late payments on the mortgage show on a credit report and after the sale of the home, the mortgage will be reported as paid or negotiated.  This could lower a homeowner’s credit score by as little as 50 points if all other payments have been made.  The affect of a short sale can be as brief as 12 to 18 months.
  • A Short Sale is not reported on a credit history.  There is no specific reporting item for ‘short sale.’  The loan is typically reported as ‘paid in full, settled.’ 
  • A Short Sale on its own does not challenge most security clearances whereas a foreclosure does.
  • A Short Sale is not reported on a credit report and is therefore does not present a challenge to employment.
  • In some successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner, (i.e., payment of the shortfall or the difference between what was owed and what the bank received.)
  • Under the Mortgage Forgiveness Debt Relief Act of 2007, if a deficiency is forgiven or cancelled, the home is a principal residence, and it is worth less than $2 million, the tax on the deficiency will be forgiven.  This benefit applies to homes that are the subject of a Short Sale and a Foreclosure.


Click the links below for more details about The Mortgage Forgiveness Debt Relief Act of 2007


2009 Tax Credit

by Leticia & Associates

The rush has started. There are waves of 1st time homebuyers looking to hurry and close escrow on their new home buy the end of November 2009. A first time homebuyer not only has the opportunity to receive up to $8,000 tax credit , but also take advantage of all the homes on the market that are priced extremely low. Don't wait any longer the clock is ticking & there are only 4 months left to close escrow on your new home.

Displaying blog entries 1-2 of 2

Share This Page

Contact Information

Photo of Leticia & Associates Real Estate
Leticia & Associates
Keller Williams Vision
15325 Fairfield Ranch Rd Ste 100
Chino Hills CA 91709-8834
(909) 731-8187
(909) 731-8187 cell/text

We can assist buyers, sellers, investors, first time home buyers, relocations, and is a certified short sale specialist in todays real estate market. We provide real estate services in Chino Chino Hills and the surrounding communities of Corona, Diamond Bar, Fontana, Ontario, Rancho Cucamonga, and Upland, Yorba Linda, Brea, La Habra. 

This website created and maintained by
Kim Hughes - Real Estate Virtual Assistant

CA BRE No. 01885348