Selling a home in Queen Creek-Short Sale vs Foreclosure

I get ask from potential Queen Creek home sellers that have to sell their homes- which is worse- a short sale or a foreclosure. Forclosure or Short Sale-Phoenix Real Estate Both will impact your ability to purchase a home in the future. There are some very important changes coming as Fannie Mae has announced changes that will be in affect starting August 1st 2008.

You cannot purchase a home under the following guidelines and time frames using Fannie Mae Conventional financing:

Chapter 7 bankruptcy; 4 years
Chapter 13 dismissed; 4 years
Chapter 13 discharged; 2 years
More than one bankruptcy filing in the past 7 years; 5 years
Pre-Forclosure (short sale of home); 2 years
Deed in lieu of foreclosure; 4 years

People with foreclosures will have the following restrictions placed on them:

5 year time period from completion date to finance or refinance without taking cash out a primary residence with a minimum of 10% down and a credit score of 680.
7 year time period from completion to finance a second home or investment property.
7 year time period from completion to take cash out of a refinance on any property regardless of occupancy type.