1. M aking the Right Choice
for a Stable Future
Prepared Exclusively for Vivian Morffi
Home Seller Keller Williams Realty
50 B Route 9 North
Marlboro, NJ 07751
732-536-9010 x163
www.MonmouthDistressedPropertyExpert.com

2. Prepared Exclusively for Vivian Morffi
Home Seller Keller Williams Realty
50 B Route 9 North
Marlboro, NJ 07751
732-536-9010 x163
www.MonmouthDistressedPropertyExpert.com
employees on a recurring basis. Having a
Short Sale foreclosure on your credit report may affect your
vs. Foreclosure ability to gain employment and may even affect
your ability to keep your current job in “at will”
employment states.
Making the Right Choice for a Stable Future
In “at will” states, an employer can fire an
Millions of Americans have lost their homes to employee for any reason not protected by anti-
foreclosure during the housing market crash. discrimination laws or US Bankruptcy Code 525,
There is also a growing trend of distressed which forbids an employer from discriminating
homeowners that have sold their home through against an employee who has filed for
a lender-approved short sale for less than the bankruptcy. In these states, an employer can
balance owed. terminate employment based on information
Lenders often prefer a short sale to a foreclosure found in a credit report.
because it saves them money. While lenders If you are in the military or in another position
may lose less in a short sale than a foreclosure, that requires you to have security clearance,
how does the distressed homeowner fare? a foreclosure may also have an adverse affect
There is much discussion in the media about on your employment. If this describes your
whether a short sale or a foreclosure is a situation, a short sale or other foreclosure
better choice. This report will compare the alternative should be considered.
two scenarios so homeowners can make an
educated decision about how to proceed when
Effects on Ability to Buy a Home
faced with this challenging situation. in the Future
One of the biggest benefits of a short sale over a
Effects on Your Credit foreclosure is your ability to obtain a mortgage
According to FICO, short sales have the same more quickly after the transaction is completed.
effect on your credit rating as a foreclosure,
For every institution that backs a mortgage loan,
lowering your score 75 to 160 points. If you have
the waiting period after a negative credit event is
a higher credit rating before entering into a short
significantly shorter after a short sale, as shown
sale or foreclosure, the drop in score will be
in the Waiting Period chart below.
more significant, as indicated by the Short Sale
vs Foreclosure chart issued by the FICO Banking
Analytics Blog. The flaw in FICO’s research is Waiting Waiting
that they are applying theory to an event that Loan Type Period After Period After
is happening to millions of households across Short Sale Foreclosure
the nation. The reality is that, compared to the FHA Immediately* 3 Years
rating of borrowers who have foreclosure on
their reports, those that have chosen short sales Fannie Mae 2 Years* 7 Years
consistently experience a lesser impact on their Freddie Mac 4 Years* 7 Years
credit scores.
VA 1 Year* 1 Year*
Effects on Current and Future Employment USDA 3 Years 3 Years
Now more than ever, employers are checking
*certain requirements must be met
a potential employee’s credit report before
hiring. Some even pull credit reports on existing
Disclaimer
© 2011 Distressed Property Institute, LLC All Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal
advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.

3. Prepared Exclusively for Vivian Morffi
Home Seller Keller Williams Realty
50 B Route 9 North
Marlboro, NJ 07751
732-536-9010 x163
www.MonmouthDistressedPropertyExpert.com
Most distressed homeowners are experiencing Being able to purchase a new home as soon
temporary financial reversals, and the flexibility as your financial stability is restored is also a
to reenter homeownership when they are ready key benefit of short sales. Even if you choose
is seen as a huge advantage of a short sale. never to own a home again, knowing that you
have the opportunity to negotiate the deficiency
Deficiency Judgment judgment is also a benefit that should not be
The deficiency judgment is the amount owed overlooked.
to the bank after a short sale or foreclosure. In Give me a call today for more information about
deficiency judgment states, the borrower may short sales and other alternatives to foreclosure.
be liable for the amount owed to the lender until I can help guide you through the process
it is paid in full. and put you back on the path to financial and
In the event of a short sale, the homeowner has emotional stability.
the right to negotiate or have the deficiency
judgment completely waived. In a foreclosure,
the homeowner does not have the opportunity
to negotiate the deficiency, and will always be Place Your confidence in cdPe
liable for this debt, often numbering in the 10s of
With the right assistance, the stress of
thousands of dollars or more.
facing foreclosure becomes manageable.
Psychological Effects CDPE-designated agents have received
Many distressed homeowners find that short the knowledge and training necessary to
sales give them more control and enable them assess all possible foreclosure alternatives
to stay in their homes while the home is for sale. and pursue homeowners’ best options. A
They can avoid the stigma of foreclosure and be
CDPE-designated agent attends several
an active participant in the process of working
out a deal with the lender. days of intensive, thorough training
on foreclosure avoidance and how to
In a foreclosure, the lender orders the
homeowners to leave on a certain date. negotiate short sales efficiently and
The event is also made public and is often ethically. The highly regarded CDPE logo
an embarrassment to the homeowners and means you are working with the most
especially hard on children who don’t fully informed, up-to-date resource available.
understand why they have to leave their homes.
Weighing Your Options
Although a short sale and a foreclosure may
have similar implications to your credit, it is
clear that for most distressed homeowners, a
short sale has many benefits that lessen the
blow of an already challenging situation. It is also
an honorable, cooperative way to work with the
bank to lessen its loss while alleviating the burden
of paying a mortgage you can no longer afford.
Disclaimer
© 2011 Distressed Property Institute, LLC All Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice.
It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.
IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer).
If you reject the offer, you wil not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender.
Even if you accept this offer and use our service, your lender may not agree to change your loan.