It’s sad to see so many people, both friends and clients so discouraged about the looming possibility of losing their home; they ignore the less destructive option of a short sale and instead go to foreclosure (which takes many years to recover from). In desperation, many people try selling there home themselves to save on realtor’s commissions, pricing it just above what they owe, only to end up in foreclosure anyway.
You should know, and share with anyone who needs to know, that a homeowner can avoid a foreclosure if they act quickly. We’ve helped many homeowners this year avoid foreclosure by negotiating a short sale for them. Some people just don’t understand the detrimental effects of foreclosures, or are afraid of considering a short sale because they think it will cost them more money. We’d like to dispel some of the myths, and clarify how we can help. Here are some facts that show the benefits of a short sale compared to a foreclosure. We hope that the below information will help you in your decision making process.
Implications of Foreclosure or Short SaleConsequences a Homeowner Should Consider |
||
|---|---|---|
|
The Issue
|
Foreclosure
|
Successful Short Sale
|
| Security Clearances | Foreclosure is a serious issue against a security clearance. If you have a security clearance – a police officer, in the military, in the CIA/FBI, in security or other position that requires a security clearance, and you are considering a foreclosure you should check on what ramifications there are if you go through with a foreclosure. | A short sale should not impact your security clearance. |
| Current Employment | Most employers retain the right to check the credit reports of their employees. Since foreclosure will negatively impact your credit report, a foreclosure could be grounds for immediate termination or reassignment. You may want to check with your employer to determine their policy towards foreclosure. | A short sale should not impact your current employment. |
| Future Employment | Bad credit is a problem for many employers and serves as a way of weeding out applicants. If you are considering an employment change and considering a foreclosure you will want to closely examine your options. In many cases, foreclosure resulting in a bad credit report could pose significant challenges if you will be seeking employment in the future. | A short sale should not impact your future employment. |
| Deficiency Judgment
Deficiency Judgment |
In all foreclosures (except in states where there are no deficiencies) the mortgage lender has the right to pursue a deficiency judgment.
A deficiency judgment is a judgment the lender puts on your public record, which shows on your credit report, to show their intent to collect on the remainder of the mortgage balance you owe from your foreclosure. |
In all short sale requests, you should negotiate with the lender to give up the right to purchase a deficiency judgment.
Remember, in a short sale request the lender has to agree to the request. |
Call us today if you or anyone you know needs help selling or buying real estate in the Phoenix/Mesa area. The information provided is from the Certified Distressed Property Institute of which we are members.
{ 1 comment… read it below or add one }
I’m looking for acreage Horse property, Manufactured mobile home 2- 3 bedroom 2 baths