Short Sale Facts

Simplest Definition of a Short Sale:

You need to sell your house, but it’s not worth what you owe.    You sell the house for less and the bank allows it to happen by releasing the mortgage lien and in many cases the mortgage note.

Some Facts About Short Sales

1. You DO NOT need to be behind in mortgage payments to do a short sale.
2. Not paying the mortgage for a prolonged period of time is what damages your credit the most.
3. If your credit score is between 600 and 675 your credit score will decrease 60 to 80 points with a short sale.
4. If your credit score is 700+, your credit score will decrease 100 to 120 points with a short sale.
5. If your house is foreclosed on, your score will decrease 250 to 280 points.
6. Divorce, job loss, pay decreases, medical issues, are all considered legitimate hardships.
7. A buyer must wait only 2 years after a short sale to purchase another home assuming credit cards, car payments, and other credit lines are kept in good standing.
8. A buyer must wait 5 to 7 years to purchase another home after a foreclosure.
9. The approximate time to complete a short sale ranges from 2 – 6 months.
10. Seller’s retirement funds are not affected by a short sale.
11. Most conventional lenders are looking for 83% in relation to what is owed them.

Feel free to leave questions in the comments or visit us at South Jersey Real Estate

Buying a House 101

The Process Simplified

1. Collect Your Documents- Previous (2) years tax returns, 30 days of recent paystubs, most recent bank account statement
2. Have a Trident Mortgage Representative Do a Financial Check- they will pull your credit, verify your documentation, and determine what you can afford monthly as well as what price  range you will be comfortable looking at homes in
3. Find Your House- Discuss your needs, wants, and likes with your Prudential agent and they will assist you in finding the perfect home.  I provided a link to get you started.   Search for Houses in South Jersey
4. Make an Offer- Your Prudential agent will negotiate your price to help you get the best deal possible
5. Sign Contracts- your agent will explain the contracts thoroughly and answer any questions you may have
6. Complete Your Mortgage Application with your Trident professional
7. Have the Property Inspected
8. Purchase Home Owners Insurance through your Trident Insurance Agent
9. Schedule with utility companies to transfer gas, electric, and water.
10. Go to Closing - Your Trident Mortgage, Trident Insurance, and Prudential Real Estate Agent, will work together to insure your closing goes smooth and that you understand what is happening every step of the way.

For more information contact Ed Barski @ Prudential Fox&Roach
856-287-7614