“Short Sale” is not a term commonly used in Winnipeg, but it still basically references pre-foreclosure situations where the homeowner has fallen behind in their mortgage payments, and is attempting to sell a home that is worth less than the amount of the mortgage. The financial institution holding the mortgage has to agree to this of course, but a “short sale” can have significant benefits.

Considering that foreclosure can have an adverse effect on:

• The ability to obtain a mortgage in the future
• Credit score and credit history
• Security clearances in a variety of industries
• Current and future employment
• Deficiency judgements, and rights in such

A short sale or negotiated settlement can be a much better option than a foreclosure.

Behind in your payments? Facing foreclosure in Winnipeg? We can help. Call (204) 792-6453.

In a foreclosure, homeowners have to wait up to seven years to qualify for a mortgage. In a short sale, the homeowner may be able to qualify for a specialized loan within two years.

Regarding foreclosures and short sales, some say there is no difference in their effect on credit scores, but a foreclosure will almost always have more of a negative influence on your credit score. In a short sale or negotiated settlement, the negative effect could disappear from your credit score in 2-3 years if all payments are made. A foreclosure will affect your credit score for at least seven years and probably more.

Foreclosures almost always have a negative effect on security clearances. Many jobs involve some form of security check and most people don’t realize this. The military, police departments, fire departments, government agencies, telecom and software development companies are just a few examples. A short sale or negotiated settlement will almost always have no effect on these clearances.

The effect a foreclosure can have on current and future employment is perhaps the most important thing to consider. Some employers not only do current credit checks, but also regular updated checks that can affect your ability not only to get a job, but to keep a job.

Negotiated settlements or short sales are not generally reported on a credit report, and therefore should not affect employment. Deficiency judgements can result in a homeowner basically having to make payments for the rest of their lives. This is not the case with a short sale or negotiated settlement.

A short sale or negotiated settlement can only be initiated if certain criteria are met. For example, the market value of the property must be less than the amount owed on the current mortgage, and generally the homeowner must have no other way of paying off the current mortgage.

There is a detailed process to follow with the lender when attempting a short sale or negotiated settlement, but as mentioned above, it can offer significant benefits for the homeowner well into the future.

Experienced help is recommended and available. Visit WinnipegShortSale.com or call (204) 792-6453 for a no cost-no obligation consultation.