Ways to Avoid Foreclosure
We all tend to believe our home is our castle. When financial distress causes uncertainty about the future of our homestead, it often can become a very emotional and bleak journey. Though all hope is not lost. There are alternatives to foreclosure: a short sale is one option that is often attainable.
Benefits of a Short Sale
- Less Damage to Credit — a primary benefit of completing a short sale is minimizing the damage to credit. Credit damage can impact a variety of factors such as your ability to retain credit cards, affect insurance rates, and alter financing rates for cars.
- Quicker Ability to Obtain a Mortgage — although many traumatized home owners find it hard to imagine owning a home again, the truth is most will. Timeframes for obtaining a Fannie Mae loan are two years after a short sale vs. seven years for a foreclosure. The more quickly a home owner can recover and re-enter the housing market, the higher the likelihood of obtaining a home at today’s lowered values.
- Cash to Sellers — new government programs offer sellers cash for participating and completing a short sale. Depending on your loan and your circumstances, you may qualify for cash incentives which range from $750 up to $3000.
- Employment Factors — some employers will not hire employees with a foreclosure and other credit issues. Further, retention of employment can be threatened with a foreclosure. For those with security clearance, they cannot have a foreclosure on their record. Short sales typically bypass these issues.
- Avoiding the Stigma of Foreclosure — to the world, a short sale appears the same as a traditional home sale. Neighbors will be aware only that you are selling your home – the sign is a traditional for sale sign and the moving out process is one that is negotiated with the bank and is scheduled and predictable. No eviction process occurs.
- Lower Tax Liability — whether you foreclose or complete a short sale you will receive a 1099 for any forgiven debt. However, as the loss to the bank is typically less on a short sale than a foreclosure, your potential tax liability will be lessened.
Benefits of working with Jeff Brand for Short-Sale Transactions
We understand how a difficult financial situation may put your home in jeopardy, adding to an already emotional and stressful time for you and your family. Armed with additional certification and training on the alternatives to foreclosure, such as “short sales,” I am able to better serve those of you who have found yourself in this type of difficult hardship.
I personally earned the following advanced education, including highly-regarded and beneficial designations:
- Short Sale & Foreclosure Resource (SFR)
- Certified Distressed Property Expert (CDPE)
- Certified Residential Specialist (CRS)
- Certified Financing Specialist (CFS)
It important to note that all communication will be kept in strict confidence.