Robyn's Finacial Update
The Impact of Credit Scores

A short sale and a foreclosure are seen as the same in terms of a credit score. Both will lower the score initially 100-150 points depending where the score originally started. Being late 30 days on a house payment can cause the score to drop 100 points. Under all scenarios, the higher the original score the larger the initial point drop. While the scores may be the same for both a foreclosure and a short sale, Fannie Mae sees someone with a short sale as a better credit risk. Financing is available after 2 years on a short sale as opposed to 5-7 years after a foreclosure. In some cases, borrowers can get a higher credit score in just a few months and climb back to a good score depending on how the short sale is reported to the credit bureaus. After 7 years the foreclosure or short sale drops off the borrower’s credit file.

Estimated Starting Score	Approximate Time to Return to Original Score	Credit Distress
680        720        780	680                 720                 780	30 Days Late On a Mortgage Payment
Will Reduce to Approximately	Estimated Recovery Time
600-620    630-650    670-690	9 Months       2.5 Years       3 Years
680        720        780	680                 720                 780	Short Sale or Deed In Lieu of Foreclosure
Will Reduce to Approximately	Estimated Recovery Time
610-630    605-625    655-675	3 Years       7 Years       7 Years
680        720        780	680                 720                 780	Foreclosure or Short Sale With Amount Of Unpaid Balance Disclosed
Will Reduce to Approximately	Estimated Recovery Time
575-595    570-590    620-640	3 Years       7 Years       7 Years

Buyers who wait for the market property values to decline run the very obvious risk of paying more annualized if rates increase. If rates go up a simple 1% buyers who were qualified for a $600,000 will now only qualify for a $550,000 home. Hoping values decrease by another 10 or 15 percent is a big chance to take. Historically rates are higher than today and many financial companies estimate the rates at 6.5 by year end. BUY NOW while there is a good inventory.

Interest Rates
	4.50%	5.00%	5.50%	6.00%	6.50%	7.00%
$200,000	$1,013.00	$1,074.00	$1,136.00	$1,199.00	$1,264.00	$1,331.00
$300,000	$1,520.00	$1,610.00	$1,703.00	$1,799.00	$1,896.00	$1,996.00
$400,000	$2,027.00	$2,147.00	$2,271.00	$2,398.00	$2,528.00	$2,661.00
$500,000	$2,533.00	$2,684.00	$2,839.00	$2,998.00	$3,160.00	$3,247.00
$600,000	$3,040.00	$3,221.00	$3,407.00	$3,597.00	$3,792.00	$3,992.00
$700,000	$3,547.00	$3,758.00	$3,975.00	$4,197.00	$4,424.00	$4,657.00
$800,000	$4,053.00	$4,295.00	$4,542.00	$4,796.00	*$5,057.00	$5,322.00
$900,000	$4,560.00	$4,831.00	$5,110.00	$5,396.00	$5,689.00	$5,988.00
$1,000,000	*$5,067.00	$5,368.00	$5,678.00	$5,996.00	$6,321.00	$6,653.00

If you want to speak to me NOW call 949 212-1147 OR for a response in 3-12 hours Robyn@RobynSeymour.com