Cobb Short Sale vs Cobb Foreclosure

Buying a Foreclosure or Short Sale listing can be very confusing for home buyers. Foreclosures in Cobb County are available in varying conditions. You can find pristine homes, homes still under construction, newly foreclosed homes, homes that have been in foreclosure for over 12 months, etc. When a seller in Cobb County attempts to sell their home as a short sale, the home is usually inhabited and the seller is maintaining the residence. As a Certified Distressed Property Expert, I can assist you with assessing the value of any distressed homes that you find or provide you a list of foreclosures and short sales available in your area.

Call Us at (770) 874-6391 for more information on Buying or Selling
Distressed Property in Smyrna, Vinings or Mableton.

As a seller, the difference between going into foreclosure or selling your home as a short sale is a little more clearer. If you are in pre-foreclosure, a short sale may be your best exit strategy.
Contact Us Now About Listing Your Home As A Short Sale.

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ISSUE FORECLOSURE SUCCESSFUL SHORT SALE
SECURITY CLEARANCES Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, security or any other position that requires a security clearance in almost all cases clearance will be revoked and position terminated. A short sale on its own does not challenge most security clearances.
CURRENT EMPLOYMENT Employers have the right and are actively checking the credit regularity of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination. A short sale is not reported on a credit report and is therefore not a challenge to employment.
FUTURE EMPLOYMENT Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment. A short sale is not reported on a credit report and is therefore not a challenge to employment.
DEFICIENCY JUDGMENT In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment. In some successful short sales it is possible to convince the lender the give up the right to pursue a deficiency judgment against the homeowner
DEFICIENCY JUDGMENT (AMOUNT) In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment. In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.
FUTURE FANNIE MAE LOAN A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for 5 years. A homeowner who successfully negociates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.
FUTURE FANNIE MAE (INVESTOR) An investor who allows a property to go to foreclosure in ineligible for a fannie mae backed investment mortgage for a period of 7 years. An investor who successfully closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.
FUTURE LOAN W/ ALL On any future 1003 application, a prospective borrower will have to answer YES to question C that asks "Have you had property foreclosed upon or given title or dee in lieu 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 will show and after sale, mortgage will be reported as paid or negociated. Whis will lower the score as little as 50 points if all other payments are being made. This affect could be as little as 12-18 months.  
CREDIT HISTORY Foreclosure will remain as public record on a person's credit history for 10 years or more. Short sale is not reported on a credit history. There is no specific reporting item for short sale. The loan is typically reported 'paid in full, settle'.