Facing Foreclosure?

It happens; we can all fall upon tough times that have us feeling that our world is crashing down around us. And for those facing a potential foreclosure due to long-term unemployment, unexpected medical bills or health concerns, or just getting in over your head, this can be a scary time. But solutions are available to help you prevent a foreclosure. A foreclosure can have a drastic impact on your credit score… as much as 160 points (or more) depending on your credit rating prior to the foreclosure. So what options do you have?

Foreclosure is the worst of the choices.  Your credit is damaged and the foreclosure will be on your record for at least 7 years.  Additionally, it will be almost impossible to get credit, to rent or purchase a home and your stress will continue.

The concept of the short-sale can be very lucrative to both troubled sellers and buyers who want a great deal and desire to get into their new home quickly. A short sale is when a seller needs to sell fast and sells for less than what is owed with the lender’s approval. And thus, the term “short” sale refers to the difference between what is owed and what the house sells for. While a short sale will have an impact on your credit score, it is generally less than with a foreclosure. Further, ability to rent or get into a different, more affordable home, is greater with a short sale than a foreclosure.

A quick sale is very desirable for sellers, as it means the property is not on the market for very long. The goal here is to get ahead of a foreclosure, which often takes banks considerable amount of time to execute. And, a quick sale will only have a negative impact on credit when the seller is unable to pay off the home loan in its entirety, and thus leaves a negative balance with the bank. Additionally, if you may incur real estate commissions and possibly not have enough to sell the home before foreclosure.

A private sale takes place directly between the buyer and seller, and the home never officially goes on the market. Buyers can benefit from private sales as they don’t have to take on the cost of a real estate agency, and sellers benefit because they have complete control of the sales process, selling the home for a fair price in an extremely timely manner. Just be sure to deal with a reputable real estate solutions company that you can trust to provide a win/win transaction for you.

When faced with foreclosure, it is important to get in front of it as soon as possible. Beat the bank by selling your house to a trusted buyer to stop the stress and avoid severe credit damage