Are you struggling to make your mortgage payments? Have you already missed payments? Is your bank coming after you or your home? Are your debts going up while your income is going down? If you said "YES" to any of these questions, WE CAN HELP!
We are short sale experts and we know that this is a stressful time for you. We want you to know that you do have options! Don't accept foreclosure as the only option! We are here to guide you through the process of short selling your home and we will fight for you every step of the way. We will try to avoid any damage to your credit or we will help you to correct any damage previous damage that may hinder you from purchasing again in the future. You don't have to do this alone! WE CAN HELP!
What is the the Mortgage Forgiveness Debt Relief Act of 2007?
The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007 (see News Release IR-2008-17) and has been extended until 2012. Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence. In years past, a homebuyer that was foreclosed upon, they had to worry about recourse debt (holds them personally liable for any unpaid debt) or non-recourse debt (not personally held responsible). With the approval of this Debt Relief Act, all foreclosed upon homeowners have non-recourse debt. If you would like more information about the Mortgage Forgiveness Debt Relief Act, please click on the following link: http://www.irs.gov/individuals/article/0,,id=179414,00.html, which will take you to the IRS website. In 2012, many homeowners will find themselves owing the IRS $1,000s and $10,000s.
What is a Short Sale?
A 'Short Sale' also known as 'Negotiated Settlement' or 'Short Pay' occurs when a lender agrees to accept less than the amount owed to payoff a loan as an alternative to foreclosure.
How does a short sale affect my credit score?
A short sale doesn't affect your credit like a foreclosure does. A short sale isn't a derogatory mark because credit bureaus don't claim "short sale" on the report. They state it as "pay as agreed" or "paid as less than agreed".
How Do Mistakes Affect My FICO Scores?
Here is a guide to how much you can expect a hit to your credit can really hurt.
| Credit Mistake |
If Your Score
is 680 |
If Your Score
is 720 |
| Maxed-out card |
Down 10-30 pts. |
Down 25-45 pts. |
|
30-day late
payment |
Down 60-80 pts. |
Down 90-110 pts. |
Debt Settlement/
Short Sale |
Down 45-65 pts. |
Down 105-125 pts. |
| Foreclosure |
Down 85-105 pts. |
Down 140-160 pts. |
| Bankrupcy |
Down 130-150 pts. |
Down 220-240 pts. |
The information contained is from various sources. However, you should consult an attorney or tax professional in regards to your individual situation.”
