Lic # 00583381


Marge Berry - 925-577-3849
Realtor Since 1997


Short Sale Vs  Foreclosure Vs  Loan Modification

Even though a foreclosure keeps on affecting you long after your home is history by devastating your credit score, most people cannot be 100% sure that they will be safe from Foreclosure because they can't foresee the unexpected--a serious illness, a major accident, a divorce or job loss can happen to anyone.

For sure, of all the available alternatives, Foreclosure is the WORST!

SHORT SALE: You should consider a short Sale and Its Advantages (a Modification of Loan is a possibility but it may have major problems,  see discussion at the end). A Short Sale is a popular option for homeowners faced with a hardship and lack of equity.  In a short Sale, you would sell your home for less than what you owe your lender; also, importantly, the lender will pay for your Realtor's fee and pay for any delinquent Property Taxes and/or HOA dues.

Short Sale: YES, with help from a Credit Repair Specialist you can own a home again
in as little as 2 years.
Foreclosure: A minimum of 5 years must pass before Fannie Mae/FHA will loan money to a buyer with a past Foreclosure.

Short Sale: Because the mortgage will be satisfied and reported as paid, only late payments will be reported under "derogatory items;" this can lower your Credit Score minimally compared to a foreclosure.
Foreclosure:  It typically lowers your Credit Score 150-250 points.

Short Sale: Many employers are now checking credit reports as part of the application process. Because a short sale is NOT reported
(*), the only thing that will affect an employment credit check is the late payments. (*) It is reported that you attempted to pay off the loan.
Foreclosure: Because foreclosure is public record, it may affect your chances at employment for up to 7 years.

This may be a viable option for some. However, some startling news is making its was through the real estate industry.  There is information that now explains why
many Banks are not giving homeowners their loan modifications. The information that is coming through is that the banks are making too much money off of short sales and foreclosures from Government adjustments and kick-backs.  Many people are holding out for a modification, hoping the Banks will give them a reduced loan payment. (Many times they will add your late payments to your loan amount and give you a lower interest-only payment for 3-5 years).  If homeowners wait too long after a default is filed, the Bank just takes the home instead. Homeowners need to be aware of this possibility and not just keep hoping that the bank is going to modify their loans.

A major problem is that there is no consistentcy in the industry.

As you can see from the information above, overall it might just be better to go for a short sale upfront. If interested, ask me for the link to a YouTube video on the loan modification scandal.

I hope this information has been helpful. If you have applied for a loan modification and the process seems too difficult, or delayed, you may be getting a "warning" that it is just not going to happen. Trust your intuition.

For more information, Call Marge Berry for an appointment; she will be glad to answer as many questions as she can for you, or direct you to the proper legal experts.
Cell: 925-577-3849
Altera Real Estate

Call Marge, Cell: 1-925-577-3849

Ask Marge for her online Tax Articles, and information on HAMP, HAFA, Short Sale Facts, Articles by Attorneys, etc. (to help you make a more informed decision) However, please Send you phone number, as she will need to talk to you briefly first, if she has not already spoken to you.