Mailbag: Short Sale Vs. Foreclosure: How Does Each Affect My Credit?

Author: jberman

Posted on in Consumer Education

Mailbag: Short Sale Vs. Foreclosure: How Does Each Affect My Credit?

Question: Short Sale Vs. Foreclosure: How Does Each Affect My Credit? A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for. In this time of option-arms coming due we will see more and more borrowers trying to negotiate short sales as opposed to going into foreclosure. In most cases the borrower are behind on payments and about to go into foreclosure. Some short sales are negotiated simply because a borrower knows they are upside down on their mortgage but has not reached the point where they have late payments. For example, the borrower’s loan is interest only and they have been unable to make principal payments. The original loan amount was $250,000 and they have been making the minimum payment and the loan balance has increased to $263,000. At the same time, the home only appraises for the $250,000 or possibly even less. Because the option-arm period is up, the borrower’s mortgage payments will increase […]

by jberman
Posted on in General

JB Group Weekly Tweet Recap for 2010-12-05

http://fb.me/uelH1Pm0 # Red Flags Raised Over Consumer Protection Bureau's Funding Method http://ow.ly/1aeTTA # Senate Banking Committee Examines Loan Servicing Problems – The Senate Banking Committee is holding the second in a … http://ow.ly/1ag5hg # http://fb.me/wAdLzEeo # Pending Home Sales vs. Unemployment. NAR Wants "More Normal" UW Regs http://ow.ly/1ahcNn # Originator Compensation Reform: Putting the Cart Before the Horse http://ow.ly/1aicso #

by jberman
Posted on in General

JB Group Weekly Tweet Recap for 2010-11-28

http://fb.me/EJPtcagn # GSE Loan Limits Unchanged Through Q3 2011 – Agency conforming loan limits for the first three quarters of 2011 have … http://ow.ly/1a6ZtC # Existing Home Sales Decline in October After Two Months of Gains http://ow.ly/1a8bY9 # New Home Sales Fall Unexpectedly In October. Median Prices Plummet http://ow.ly/1a9j9e # Americans Less Certain the Housing Market Has Bottomed – Americans are still waiting for the housing market to hit b… http://ow.ly/1abbwC #

by jberman
Posted on in General

JB Group Weekly Tweet Recap for 2010-11-21

You can't time the market. Days like today in the bond market are why we don't float loans in process. If the… http://fb.me/L4OJKCuh # http://fb.me/Ix1YKZLr # Another Fed Governor Calls Servicer System "Misaligned" – On Friday two Governors of the Federal Reserve spoke out a… http://ow.ly/19ZuLk # Home Builder Confidence Tempered by Credit Access – Home builder confidence as measured by the National Association … http://ow.ly/1a0Iej # Housing Starts Down Sharply, Permits Flat in October Census Data http://ow.ly/1a1VCK # Federal Agencies Examining Loan Servicers, MERS, and LPS – Mortgage Electronic Registration Systems (MERS) and Lende… http://ow.ly/1a39qA # Fannie Mae Sees Economy & Mortgage Market Improving – Despite the anticipation for sluggish growth into the first pa… http://ow.ly/1a4iBh #

by jberman
Posted on in General

JB Group Weekly Tweet Recap for 2010-11-14

BatchBlue launches iPhone app. http://ow.ly/365Y5 >> I missed this while out of town. RSS is a good way to catch up. # (interesting concept) >> In recent years Fannie Mae has been experimenting with an interesting new product:… http://fb.me/J203AM9f # Realtors Ask Mortgage Industry to Ease Underwriting Policies http://ow.ly/19S5fg # HUD and Realtors Team Up to Create Home Buying Video Guide – The Department of Housing and Urban Development (HUD) a… http://ow.ly/19TinA # FHA Commissioner Announces New Loan Product and Shares Education Resources http://ow.ly/19Uw1S # Industry Organizations Request Delay of TILA-RESPA Integration http://ow.ly/19VHRD # Mortgage Interest Tax Deductibility Back in Debate as Congress Looks to Cut Deficit http://ow.ly/19WPVl #

by jberman
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