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Short Sale Options with Federal City Properties, LLC

With the real estate market declining, some of the homeowners can find it extremely difficult to sell off their properties. In case you happen to be over leveraged, then you might just want to walk away, but this will not be good for you. In case your home has to go through a foreclosure, then you can suffer some serious consequences. However, do not be scared if you are going through this, because with Federal City Properties, LLC, you have more options than you might think. We happen to be experts when it comes to negotiating debt with the banks and in most of the instances, we can even buy your property from you directly, so that you do not have to go through a foreclosure.

Effects And Their Results
With A Short Sale And A Foreclosure

Effect: Ability to purchase another home

Short Sale: Beginning in May 2008, upon the success of your home's short sale, your eligibility for obtaining a mortgage backed by Fannie Mae will increase after just two years.

Foreclosure: Beginning in May 2008, if your property undergoes a foreclosure, you will not be eligible for a mortgage backed by Fannie Mae for four years.

Effect: Ability to purchase a second home or investment properties

Short Sale: You will have to wait two years before being eligible to receive a mortgage backed by Fannie Mae.

Foreclosure: This will be the same as the previous foreclosure. However, you will not be considered for an investment mortgage by Fannie Mae for the next seven years.

Effect: Obtain conventional Financing

Short Sale: While this is a new territory and there is no definite answer for this by most of the major lenders, most people believe that the effect will not be as bad as that in a foreclosure.

Foreclosure: In case you even get approved for a conventional loan, chances are that you will have to pay an interest rate that is much higher.

Effect: On the credit score

Short Sale: In this, the credit report will only show late mortgage payments and your credit score has a chance of decreasing by only 50 points.

Foreclosure: In this case, your credit score can decrease by as much as 225 to 350 points. This will remain for the next 10 years.

Effect: On credit history

Short Sale: This will not have a substantial effect nor will it appear on your history.

Foreclosure: This will be on your credit report for the next 10 years along with being listed on public records.

Effect: My need for my job’s security clearance

Short Sale: With this, there will be no effect on a new security clearance application.

Foreclosure: A foreclosure intensely affects a security clearance.

Effect: My current employment

Short Sale: This will not be reported on your credit report and thus should not have any effect on your employment.

Foreclosure: A foreclosure can have a major impact on your position within your company.

Effect: On future employment

Short Sale: Most of the future employers will be checking your credit report before they hire you. However, a short sale will not be reported and hence you will not have any issues.

Foreclosure: A credit check might be required by many employers for the initial screening process. A foreclosure can thus be very detrimental to your future employment.

Effect: On deficiency judgment

Short Sale: Most of the short sale negotiators strive to have the debt fully paid.

Foreclosure: Most nationwide banks will seek a deficiency judgment and go after your assets after a foreclosure.

Effect: On any deficiency judgment amount

Short Sale: More than likely, the short sale amount will be less than the total amount owed to the bank, creating a deficiency to the bank.

Foreclosure: You might owe more to the bank, if the foreclosed home does not sell at the auction.

The Benefit Of
Short Sales

If you have been struggling with mortgage payments, have been unsuccessful at selling your home, or owe more than your home’s worth, then you should know that you are not alone in this struggle. Rather than giving up, you should look into short sales. This will give you an opportunity to save your credit as well as rid yourself of the huge debt that is weighing you down.

If you decide to short sale your property, then we, at Federal City Properties, LLC will negotiate a deal with your bank, and potentially offer to purchase your property, thus saving you time during the process.