Printed material on affect of Foreclosure or Short Sale on credit !!

I am looking for some printed material to share with my clients who are contemplating letting their home go to FC.  I am talking to them about the advantages of a short sale, but could use some great printed material or links to actually send them.

Would appreciate any help on this!

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email me and I can send you something. 

Not sure how to do this!  Where would I find your email?

How do I email you Becky?  I really could use this information today.

Thanks!

I would like to have the same information if possible

since FC  may not be the # 1 reason

Thanks!

Hi Erie,

email me at [email protected]

While it is true that short sales represent slightly better risk than foreclosures, they do not perform well enough to merit a more positive treatment in the FICO® Score. Here’s why. In the population we studied, one out of every two borrowers who experienced a short sale went on to default on another account within two years. That is exceptionally high risk. Additionally, the overwhelming majority of consumers with short sales have some other evidence of mortgage delinquency.
Read more at http://www.nakedcapitalism.com/2012/09/on-ficos-dubious-explanation...

Exactly!  You nailed it Kevin. 

You SHOULD NOT be advising clients on this. You are probably not an attorney, and therefore open yourself up to liability by doing so. What you can do is say:

" There are several options to avoid foreclosure, and for many people, a short sale offers the best solution.  Please seek the advice of an attorney to learn how this may affect you personally"  Then have a trusted attorney ready to answer questions.

With credit, again, not your place.  For one thing, there is no "one" answer.  What affects one persona one way, can affect another completely different. I have seen peoples credit scores drop zero points, and I have seen them drop hundreds. The rule of thumb is, the stronger your credit before the short sale, the stronger it will be after.  This does not take into account any mortgage lates, which have a dramatic effect.  If you have a perfect scenario with no delinquency, the lender will still report as "settled less than full balance" even if their credit score is unaffected, they will be precluded from obtaining a GSE mortgage (Fannie/Freddie) for 24 months.  Curiously enough, if they have no mortgage lates, they can get an FHA mortgage the day after a short sale. 

CYA, always refer clients to an attorney for advice.

www.josephalfe.com

I agree with you on "advising".  They have met with an attorney -- I am just trying to give them information to assist them in making their final decision.

Thanks!!

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