Bill Olmstead Team

Do you know a homeowner facing foreclosure?? They have other options…

The news headings and papers are filled with stories of homeowners in financial distress and facing foreclosure on their home. This financial crisis has left these homeowners wondering what to do; and with all the miscommunication and rumors out there–it appears hopeless at times.

But wait… there are sensible and valid solutions out there, and the best one for the homeowner may be a short sale. A short sale simply put, is the sale of a home in which the seller’s lenders agrees to accept less than the full amount owned.

 So why do a short sale, instead letting the home foreclose?

Here are just a few reasons…

• Avoid the foreclosure stigma- Homeowners may need to disclose to future employers and in any mortgage application if they have ever had a foreclosure on their record. Also, foreclosure is often specifically asked about on credit inquiries and  can have an adverse affect on future mortgage rates.
• Protect your credit score- A Short Sale often has a lesser impact on your credit score, than foreclosure does. A foreclosure on your credit report is almost impossible to get repaired.
• Improve eligibility on government insured loans-If you go though foreclosure, the homeowner could be ineligible for a conventional government insured loan for (5-7 years)
• Avoid deficiency judgement–Arizona is an anti-deficiency state, however deficiency protection applies only to specific circumstances. In some success short sales, it is possible to have the lender give up their right to pursue a deficiency judgment against the homeowner.
• Protect employment prospects-Many employers are running credit checks on prospective employers. Foreclosure is on the top of items that could put your future employment in jeopardy.

Read more about the differences in Foreclosure vs Short Sale Chart

To read more about short sales visit our Short Sale FAQ’s or visit our Short Sale Resource page for helpful links and downloadable materials.