Is it enough to really encourage the banks to be more cooperative in a short sale environment?  Probably not.  Will it encourage more homeowners to attempt to short sell their house versus a foreclosure – maybe. 

In a Carlsbad short sale, the homeowner normally can not afford to keep making the payments.  Maybe they have contacted the lender and asked for a modification and the lender couldn’t help them.   So, rather than walking away from the property and letting it go to foreclosure, they attempt to sell the property for less than is owed on it.  They normally live in the property (payment free) until the sale is completed.

This is beneficial to the lenders because vacant foreclosures are often ransacked – by angry property owners, or vandals, bringing down the price of the home even further.  It is beneficial to the homeowner because it reports more positively on their credit report. 

For More Information on Carlsbad Short Sales vs. Carlsbad Foreclosures…

Carlsbad, CA

In today’s real estate market, more and more people are looking foreclosure out of both necessity and financial strategy.  If you give back your house, they can’t still hold you accountable for the loan, can they? 

Although California is a non-recourse state that typically says no – more and more banks are finding themselves successful in recouping losses from borrowers who refinanced their homes and used the funds for things other than improving the home itself!

In addition to the more severe credit penalties, a debt on a house you don’t even own anymore is really making foreclosures less desirable.  If you can not afford to make the payment on your home, you really may want to talk to a real estate professional about the possibility of a short sale instead.  In a short sale, you actually sign documents with the lender, releasing yourself from the obligation of the loan.  If you have any questions at all about your possibilities of a foreclosure or short sale, please contact The Mewborn Team.  We would be happy to schedule a no obligation marketing consultation.

Down 10 to 30 pts. 

Down 25 to 45 pts. 

Down 60 to 80 pts.

Down 90 to 110 pts. 

Down 45 to 65 pts. 

Down 105 to 125 pts. 

Down 85 to 105 pts.

Down 140 to 160 pts. 

Down 130 to 150 pts.

Down 220 to 240 pts. 

Carlsbad, CA - You may know your credit score – but do you have any idea how it is calculated?  In a formula that is so secretive that they could tell you – but then they’d have to kill you, we never know how our actions will affect that score. 

How will your credit score change if you close a credit card?  Should you go through the hassle of a short sale, or just allow your house to go into foreclosure?  What if things are tight, and you go over your credit card limit?

Your credit score is a three digit number normally between 300 and 850.  It is the number used to determine the risk of giving you a loan.Scores over about 715 are considered good scores, and typically will get you the best interest rates.  Scores over 600 and under 715 are moderate scores. 

And although you may get a loan, you may pay a premium interest rate to get it.  Scores under 600 are typically considered to be a high risk borrower.  These borrowers either may not get a loan, or may pay much higher interest rates on their loan.

Although the formula is still a mystery, Fico.com has at least provided a table showing some of the most common penalties to your credit score.

FICO’s information shows that bankruptcy does the most serious damage to a credit score (up to 240 points), followed by foreclosure (up to 160 points) while maxing out a credit card has the least numerical impact (as few as 10 points).

Those with good or excellent credit — so-called prime borrowers — put more points at risk with each mistake. For example, someone with an average credit score of 680 who pays a bill 30 days late will see a drop of 60 to 80 points. But for someone with an excellent credit score — 780 — that same delinquency can cost 90 to 100 points.

If considering whether or not to try to sell your house through a short sale vs. allowing a full foreclosure, please keep in mind that settling a debt (short sale) with a lender can save you 50 to 100 points (and the ability to get another loan in the future) or MORE!  If you have any questions about how this might impact you personally, or how to market your property for a short sale, please contact The Mewborn Team.  We are happy to sit down with you for a no obligation consultation about your best options.

As a La Costa, Carlsbad, or Oceanside buyer, it is wise to be cautious when considering a San Diego foreclosure. Carlsbad foreclosures (and any other foreclosures) are normally sold as is.  As a Carlsbad home buyer, it is important to have the house thoroughly inspected and to be sure that any liens, undisclosed mortgages or court judgments are cleared or at least disclosed.

There are some amazing prices on short sales and foreclosures right now in La Costa Oaks, La Costa Ridge, La Costa Greens, and San Elijo.  You can search for Carlsbad, Oceanside or San Marcos foreclosures for sale from our Foreclosure Search button below this post.

When you are ready to make an investment into a La Costa, Carlsbad, Oceanside, or San Marcos foreclosure property, we can put our expert knowledge to work for you. Give us a call today!