Short Sale vs Foreclosure-Selling your home in Phoenix
June 29th, 2008 categories: Mortgage and Lending, Phoenix Foreclosures, Selling a Home
I get ask from potential Phoenix home sellers that have to sell their homes- which is worse- a short sale or a foreclosure. 
Both will impact your ability to purchase a home in the future. There are some very important changes coming as Fannie Mae has announced changes that will be in affect starting August 1st 2008.
You cannot purchase a home under the following guidelines and time frames using Fannie Mae Conventional financing:
- Chapter 7 bankruptcy; 4 years
- Chapter 13 dismissed; 4 years
- Chapter 13 discharged; 2 years
- More than one bankruptcy filing in the past 7 years; 5 years
- Pre-Forclosure (short sale of home); 2 years
- Deed in lieu of foreclosure; 4 years
People with foreclosures will have the following restrictions placed on them:
- 5 year time period from completion date to finance or refinance without taking cash out a primary residence with a minimum of 10% down and a credit score of 680.
- 7 year time period from completion to finance a second home or investment property.
- 7 year time period from completion to take cash out of a refinance on any property regardless of occupancy type.
That is really good information. I will use that when I present the short sale as a great option.
Jonathan Christopher of Short Sale Way
Jamie-
Excellent info. I have a half written short sale vs. foreclosure post myself…I’m linking this this as part of it.
@Jonathan and Steve- Thanks-it will be interesting in the years to come if they stick by these numbers
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