Short Sale of house/effect on federal employees?

[jtl323]

Ok, so this doesn't really fit into the "job center", but where else should I post it??

Any current Fed's or anyone that knows.... will a short sale of a house in any way harm me in a federal job, during my probation period? I assume a forclosure would be bad, but a short sale is an agreement with the bank, so....is it allowed, or can anyone point me to the correct person to ask this? I don't want to get my dream job, short sale my house so I can move across country, then get fired for some "negative credit" clause I didn't know about. Thanks.

[QuietPro]

^^^ It depends. Short sales are not as bad as bankrupcy; but they DO give your credit score a big ding. If you're going to be a Marshal, (From reading your above profile) I'm not sure if they'll want you to hold a security clearance or not. If so, you'll be filling out the SF-86 form- (Hell, you probably will anyway) and you must be sure to reveal it in the financial history portion of the questions. I'm sure you'll be interviewed by an OPM investigator and probably questioned about it. I don't think it's nessassarily a job killer, although it's certainly not a favorable thing for your financial history. The best you can do is be totally honest about it; because what's done is done and you can't hide it when they pull your credit history...... which they will.

Also, you can post questions like this in "Ask A Cop"...... Good luck, dude/dudette.

[tsfl89]

Ok, so this doesn't really fit into the "job center", but where else should I post it??

Any current Fed's or anyone that knows.... will a short sale of a house in any way harm me in a federal job, during my probation period? I assume a forclosure would be bad, but a short sale is an agreement with the bank, so....is it allowed, or can anyone point me to the correct person to ask this? I don't want to get my dream job, short sale my house so I can move across country, then get fired for some "negative credit" clause I didn't know about. Thanks.

I personally knew a co-worker that had to short sell his house while we were in training and he still obtained his TS. I'm sure it's a case-by-case basis shorta thing, but a lot of people have had real estate problems over the last few years. The might be much more lenient for just that reason.

[thebonekracker]

As long as the shortsale is not due to your irresponsibility, you should be fine. People are being forced into this situation when they are transferred for work, their income takes a significant decline for some reason, and other scenarios that may be out of their control. If, however, you bought into to big of a mortgage to begin with, are walking away only because you're upside down with the current market but are financially able to make the payment, or for some other reason that is in your control - well it might show a lack of good judgement/integrity/responsibility. Those that take responsibility for their actions, and are open and honest about their financial condition, generally don't have a problem.

It sounds like your situation will be out of your control - shortsale because of a forced job transfer - and that is typically not an issue as long as you work with the bank and make every effort to do right by them.

Hope that helps -
bone

[Cman21]

As long as the shortsale is not due to your irresponsibility, you should be fine. People are being forced into this situation when they are transferred for work, their income takes a significant decline for some reason, and other scenarios that may be out of their control. If, however, you bought into to big of a mortgage to begin with, are walking away only because you're upside down with the current market but are financially able to make the payment, or for some other reason that is in your control - well it might show a lack of good judgement/integrity/responsibility. Those that take responsibility for their actions, and are open and honest about their financial condition, generally don't have a problem.

It sounds like your situation will be out of your control - shortsale because of a forced job transfer - and that is typically not an issue as long as you work with the bank and make every effort to do right by them.

Hope that helps -
bone

It isn't a forced job transfer. It looks like he is choosing to become a US Marshal. He is moving from
Georgia to Texas to do that and therefore he needs a short sale to unload his house. How does that scenario look for him?

[tsfl89]

It isn't a forced job transfer. It looks like he is choosing to become a US Marshal. He is moving from
Georgia to Texas to do that and therefore he needs a short sale to unload his house. How does that scenario look for him?

Again.....he should be fine. My coworker had to do the same thing. He short sold his while we were in FLETC and he still obtained his TS clearance.

Obviously, everyone should avoid the short sale. I'd never want to do that. I'm crazy when it comes to my credit score. Sometimes it's not possible though and I'm sure they understand that in this climate. Especially if you have to do it to accept the job with them and otherwise wouldn't be short selling it.

[GatorFutureSA]

Ok, so this doesn't really fit into the "job center", but where else should I post it??

Any current Fed's or anyone that knows.... will a short sale of a house in any way harm me in a federal job, during my probation period? I assume a forclosure would be bad, but a short sale is an agreement with the bank, so....is it allowed, or can anyone point me to the correct person to ask this? I don't want to get my dream job, short sale my house so I can move across country, then get fired for some "negative credit" clause I didn't know about. Thanks.

why not rent it out for a year while it's on the market? You'd still have the tax benefit, your credit wouldn't be dinged up and if for whatever reason it doesn't work out at the USMS (get hurt at FLETC, change of heart, etc), you can always go back home.

I also think there is some restructuring programs available that you could take advantage of. Take a look at http://www.makinghomeaffordable.gov

Good luck and Congratulations!!

[tsfl89]

why not rent it out for a year while it's on the market? You'd still have the tax benefit, your credit wouldn't be dinged up and if for whatever reason it doesn't work out at the USMS (get hurt at FLETC, change of heart, etc), you can always go back to home.

I also think there is some restructuring programs available that you could take advantage of. Take a look at http://www.makinghomeaffordable.gov

Good luck and Congratulations!!

GREAT advice. That's what I did with my residence in FL when I got my current fed job. I'm one of the lucky ones who's actually making money off of my house. One of my buddies did the same and has to still make up the difference every month, but it's worth it to me to avoid the credit hit.

[jtl323]

If i am scheduled to start FLETC next month as a Marshal's employee, I will have my security clearance already, as they have worked on it for 2 years. They have already pulled my credit during the process, and found no problems. The problem won't exist until im hired by them and i take a 1) pay cut from my current job and 2) I move to Texas because they said "If you want the job, it's in Texas"..... I have been current and up to date on my mortage for 9 1/2 years with no problems.
Anyone know anyone I can ask this to in a position of authority? Recruiters won't know, Human resources hasn't a clue......

[jtl323]

why not rent it out for a year while it's on the market? You'd still have the tax benefit, your credit wouldn't be dinged up and if for whatever reason it doesn't work out at the USMS (get hurt at FLETC, change of heart, etc), you can always go back home.

I also think there is some restructuring programs available that you could take advantage of. Take a look at http://www.makinghomeaffordable.gov

Good luck and Congratulations!!

Thanks, It's not that I didn't think of renting it out, but..... I can't afford to pay the mortgage here and rent for a house/apt in Texas at the same time. So, if I don't get a renter in my Ga house, or if a renter skips out, or if the renter fails to pay, then I can't cover that mortgage anymore, which will force me into a foreclosure status that I would rather avoid. It seems to look better (and affect my credit far less) to short sell it rather than go into foreclosure.

[thebonekracker]

If i am scheduled to start FLETC next month as a Marshal's employee, I will have my security clearance already, as they have worked on it for 2 years. They have already pulled my credit during the process, and found no problems. The problem won't exist until im hired by them and i take a 1) pay cut from my current job and 2) I move to Texas because they said "If you want the job, it's in Texas"..... I have been current and up to date on my mortage for 9 1/2 years with no problems.
Anyone know anyone I can ask this to in a position of authority? Recruiters won't know, Human resources hasn't a clue......

The people in the position of authority here are the adjudicators for the Marshal Service. They are the ones that will make the final determination, but not sure who would put you in touch with them. I wouldn't sweat it because it shouldn't be an issue as noted by tsfl89's story about the coworker. This is a fairly common occurrence with today's housing market.

I've been working in background investigations for a few years now and from what you've described so far (unless you're withholding significant details), this won't be an issue for you.

Cman21-> It's looked at just the same as a forced job transfer. If he wants the job, he has to move.

[JLO88]

Read this article just now.

http://www.mercurynews.com/bay-area-...271?source=rss

[tsfl89]

If i am scheduled to start FLETC next month as a Marshal's employee, I will have my security clearance already, as they have worked on it for 2 years. They have already pulled my credit during the process, and found no problems. The problem won't exist until im hired by them and i take a 1) pay cut from my current job and 2) I move to Texas because they said "If you want the job, it's in Texas"..... I have been current and up to date on my mortage for 9 1/2 years with no problems.
Anyone know anyone I can ask this to in a position of authority? Recruiters won't know, Human resources hasn't a clue......

FYI, you may or may not have your final clearance when you head to FLETC. I had an "interim clearance" until I was almost done with FLETC. Many times, they won't start your in-depth background until you make it to training. I'm sure that varies between the agencies.

[GatorFutureSA]

Thanks, It's not that I didn't think of renting it out, but..... I can't afford to pay the mortgage here and rent for a house/apt in Texas at the same time. So, if I don't get a renter in my Ga house, or if a renter skips out, or if the renter fails to pay, then I can't cover that mortgage anymore, which will force me into a foreclosure status that I would rather avoid. It seems to look better (and affect my credit far less) to short sell it rather than go into foreclosure.

Good points! A couple friends of mine have gone through the short-sale process here in Florida. It's pretty long and drawn out (one took 9 months, the other took about 13 months). In both cases, the bank (one was BoA, not sure on the other one) wouldn't consider a Short-sale until payments were missed and the owner showed they weren't able to make the payments. One of the banks also made the owner list the home for a certain number of months before they'd move forward.....the mortgage lenders had them over a barrel for sure.

Just be sure you get all the information you can so you make the best decision for you.

Good Luck!