maine foreclosure options, short sales maine, prevent foreclosure ME, distressed properties

Prevent Maine Foreclosures, short sales in Maine

There are many reasons a person or property may be headed toward foreclosure.
You may have heard the term “DISTRESSED PROPERTY”

The following is the definition of a DISTRESSED PROPERTY:

Property that is or will soon be in some stage of the foreclosure process.
Property owned by a person or persons who is experiencing a period of financial instability.
Property on which the mortgages total an amount higher than the current value and the
owner must sell.
Property is in poor physical condition. (Does not have to be to qualify)

It is important for you to know that there are choices if you are facing these situations.
Some of your choices are listed below:

1. Forbearance
2. Sell the property
3. Refinance
4. Mortgage Modification
5. Deed-in-Lieu of Foreclosure
6. Bankruptcy
7. Service Members Civil Relief Act
8. Short Sale

The saddest part about these situations is a lot of times a homeowner does nothing and loses
the home to foreclosure when they do not have to. A CDPE Agent understands these choices
and will help you through the process.

*You do not have to be late with your payments to be eligible for a short sale*

HOMEOWNER CONSEQUENCES
FORECLOSURE VS. SHORT SALE
download full report from the Distressed Property Institute, LLC here

Issue Foreclosure Successful Short Sale

Future Fannie Mae Loan - Primary Residence (effective May 21, 2008) A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. A homeowner how successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.

Future Fannie Mae Load - Non Primary (effective May 21, 2008) An Investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years. An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only
2 years.

Future Load with any Mortgage Company On any future 1003 application, a prospective borrower will have to answer YES to question C in VIII of the standard 1003 that asks "Have you had a property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" this will affect future rates. There is no similar declaration or question regarding a short sale.

Credit Score Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over
3 years. Only late payments on a mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale's affect can be as brief as 12 to 18 months.

Credit History Foreclosure will remain as a public record on a person's credit history for 10 years or more. Short sales is not reported on a credit history. There is no specific reporting item for 'short sale'. The loan is typically reported 'paid in full, settled'.

MORE ..... READ THE FULL 2 PAGE REPORT HERE
Information provided by the Distressed Property Institute, LLC

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