FORECLOSURE OR SHORT SALE WHICH IS BEST FOR YOU or DO YOU HAVE A CHOICE????

My job is normally full of happy clients that are looking to sell their current home and move to a better location, or build their dream home...you get the idea. But lately the market is seeing more and more people that are needing to sell their homes because they just can't afford the payments anymore. Either they have lost their jobs, had a drastic reduction in their income, or realized that they are upside down in their mortgages.
If this is a reality for you, first off please know you ARE NOT ALONE. The best attitude you can have right now is looking at your situation head on and not trying to make it "better" than it is. I have seen people just try to go on an hope it goes away. Let me tell you now it IS NOT GOING TO GO AWAY. You do not want to have the day come when the Sheriff's department is knocking at your door and making you leave your home. Take some professional advice and do the right thing.
First of all many people are not aware of what a short sale is. Let me brief you on what a Short Sale is. When you owe say $295,000 on your home and you have a Realtor run a market analyisis of your property and they show your home in the current market is worth no more than $195.000 well that is an example of where a short sale may be perfect for you. The process continues to the offer, you get an offer for your home and then your agent will submit it to the bank. Clearly what they will pay for the home is less than what you owe on your mortgage (you are SHORT the amount you owe). The bank then will be able to accept or decline the offer depending on many variables, and the best of course is when the accept the offer...then you move on to closing. You will not make money on the home, you are loosing money as is the bank. That is the basic idea of a short sale.

Contact your mortgage company and let them know you are hiring an agent to help you sell your property. Let them know it is worth less than what you currently owe on the property. Then contact a professional QUALIFIED Realtor that is educated on Short Sales and make an appointment with them. They will be able to handle the rest for you. They WORK FOR YOU! We do all the negotiations with not only the Buyers but also with the bank on your behalf. This way when an offer comes in we step in and handle the paperwork (and let me just tell you now it is a substantial amount of paperwork), the research to proove the market value, all the back and forth. Also, your agent should let you know ASAP that a "short sale" is not indicative of the length of time it will take to close ...it is likely to take up to 4 months or more to get it to closing. Not only do you have to sign off on the deal but then the bank has to sign off on it. Then you have appraisal issues, inspections...etc. You get the idea now...you NEED A REALTOR to help you with this process.

What if you are not qualified for a SHORT SALE...and you can't afford your home anymore? Then it looks like foreclosure is your next option. Again, call your Realtor and set up an appointment just to review your options. They can assist you an make sure that you don't have any other choices as far as what you could do before resorting to FORECLOSURE. You will likely get a notice in the mail when you are in arrears and they will proceed to foreclosure. Try to contact and stay in contact with your mortage company. IMMEDIATELY when the realization comes that you will not be able to make your mortgage note. Ask yourself, is this temporary...long term? Can you borrow the money to get yourself back on your feet and in the black with your mortgage company or is there nothing you can do. Can you possibly stop paying on credit cards to get enough money together to pay your mortgage. Yes I did just say that...default on a credit card is bad on your credit but not as bad as a FORECLOSURE.

Final words, don't wait until it is too late to help yourself...a home is where you and your family are not just one particular house. Getting professional advice immediately will enable you to have the best possible outcome to your situation. Use this as a teaching tool for your children, let them know that life will sometimes throw them situations that are beyond your control like the loss of a job, and you can either let it control you or you can control it.
Denial is not something that is going to help you, being realistic about your finances and being honest with your Realtor will help to see you through this situation. Remember the old saying "This too shall Pass" and it will, it will seem like the end of the world but it is not. Handling the situation and hiring a Realtor and other professionals will make this process as easy as possible all while giving you and your family the best outcome!


Good LUCK and if you need help or would like to schedule a free appointment to discuss your current situation please don't hesistate to contact me Kimberly McCampbell, Realtor CMS PS Real Living Houston Home Sales"THE MCCAMPBELL TEAM" MULTI MILLION DOLLAR PRODUCER FOR 2010