Short sale inventory in the Twin Cities, Oct 2009 [pdf]
The Treasury yesterday anounced new guidance for servicers/lender to help unclog the short sale sewer pipe. Calculated Risk has summarized the details, and Rueters has a good write up.
There is however, a small rhetorical flourish within the Reuters piece worth hoisting here for elaboration:
“Short sales are favored by real estate agents and community groups over foreclosure because they can preserve the borrower’s credit rating…”
Depending on how you define “preserving” this is true.
However, those considering a short sale (see graphic above) would be wise to understand that regardless of your credit “rating” you won’t likely be getting a loan from Fannie, or Freddie, or the FHA for at least two years, and in many cases four years after a short sale.
True since at least June of last year. You can read the memo yourself from Fannie Mae right here.
Related posts:
- Born Again: When will you be eligible for a mortgage after a foreclosure or short sale?
- FICO: Quantifying the Damage, How Short Sales May Impact Credit Scores
- Born Again: How Long Do You Have to Wait After a Short Sale, Bankruptcy, or Foreclosure?
- Why does it seem like everything is now a short sale?
- Short Sales: Many a Slip ‘Twixt the Cup and the Lip
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