Short Sales, Foreclosures, and Your Credit Score

April 18th, 2010 category: Real Estate News

slide 2As the East end of Long Island (north fork, Hamptons, NY) sees an increase in homeowners missing house payments, or selling short (owing more on the loan balance that the market will bear) a question that has floated around for the last few years is this: HOW does this impact my credit (short sale, foreclosure, deed in lieu of)?

Due to the magnitude of mortgage problems faced by many homeowners, it’s taken some time to receive information on credit ramifications for the various alternative choices that homeowners have available for consideration.

An article found here offers some clarity.

VantageScore is, according to Kenneth Harneys article, a joint venture created by Equifax, Experian and TransUnion, and carries it’s own “score” for consumers.

FANNIE MAE has brand new parameters outlining credit implications/re-establishment, which can be found here.

Stirling HarborTo determine if Fannie Mae owns your loan, simply click here, and you can find out in seconds- if the goal is to remain in your home, all HAMP guidelines are ready to view. 

To view HAFA alternatives, click here. There are recent changes to all programs, as the government seeks to mitigate the mortgage MESS.

Please read ALL of this if you are mired in a downturn that has resulted in choices- while initially confusing (HAFA,HAMP,FANNIE MAE, FREDDIE MAC, ETC.), your lawyer, accountant and real estate agent will assist in the method of your choice- awareness of alternatives is essential.

Whether you are considering alternatives that might help you stay in your home,  missing payments for the short term, selling your home as a short sale, or contemplating the impact that a short sale, foreclosure or bankruptcy might have on your credit opportunities, all of this is must read.

Always consult your accountant and lawyer before making decisions for which clarity is sought, but for those wondering,  insight is provided from the VantageScore study, along with the Fannie Mae/HAFA sites linked above.

In a real estate market that is nothing short of a moving target, staying on top of your mortgage choices in all scenarios should be an ongoing effort- your future choices depend on what you decide now.

If you are considering none of the above, and just landed on the site to view homes for sale on the East end of Long Island, click here for east end, Long Island properties!

To view a current offering of east end (north fork, Hamptons) REO/foreclosure properties, click here.

This entry was posted on Sunday, April 18th, 2010 at 2:59 pm and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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