Why is a short sale a viable option for buyers and sellers?

Short sales are gaining traction among lenders because of a new federal incentive. In essence, the government has agreed to absorb a part of the loss that a bank sustains whenever they do a short sale.

"In May, the Treasury Department said it would offer a streamlined framework for short sales and incentive payments of $1,500 to homeowners, $1,000 to loan servicers and $1,000 to second-lien holders," The San Francisco Chronicle reports.

Just 18 months ago, the term "short sale" was not widely known. Today, it's gaining some currency as more and more short sales get done, but it's still a misunderstood concept.

Short sales are when you need to get out of a house and you get the lender to agree to take market value on the sale -- instead of what you actually owe on it. You'll take a hit of about 120 or 130 points on your credit score for doing one.

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How does a foreclosure or shortSale effect my credit

I am often asked how does a short sale or foreclosure will impact someone's credit score. A new report from syndicated writer Kenneth Harney now reveals the damage.

Before we go further, please note that these figures below are compiled based on your Vantage credit score. The Vantage score is a fake score manufactured by the three main credit bureaus -- Equifax, Experian and TransUnion. It is not the official score used by most lenders. Yet it still give you a good indication of what to expect with your true credit score.

• A short sale will ding your credit score by 120-130 points.•

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Do Lenders Discriminate Against New Mothers

As I work with buyers, it is always interesting to hear the story of what has inspired them to purchase a home. Among some of the most common reasons is that a couple is expecting a child.


I’ve spoken with several couples that have purchased a home or are purchasing a home to accommodate the idea of their growing family.


It is important that you have a knowledgeable real estate agent to help you in todays ever changing lending guidelines.


Everyone has heard that you can’t get a loan these days; that is simply not true, however it is true that lending guidelines have become tighter in the past couple of years to cinch up some of abuses that lead to the “mortgage meltdown.” This has lead to an interesting perception that lenders are discriminating against pregnant women and new mothers, as has been represented in the media recently.


My question is: is this a case of discrimination or do the guidelines that are in place to substantiate a borrower(s) income inadvertently affect households in which there is an impending or recent childbirth?


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