Must Know Facts About Short Sales and Foreclosures, Part 1 #realestate #homeownership

In the wake of a challenging and swiftly changing society, it's estimated that in our current market, one out of seven homeowners are unable to make their current mortgage payments.  For consumers faced with this frightening and stressful situation, the good news is that no one has to go it alone.  Having the right advocate, armed with all the right information and documentation can make the difference between avoiding foreclosure and successfully negotiating a sale of your house.

Let's take a look at some must-know facts about this tough issue and hopefully open a few doors to answers and options for you (or someone you know):

1.  Foreclosure is Not Your Only Recourse
With the Presidential administration, the Federal Treasury, Fannie Mae, Freddie Mac, FHFA, HUD, as well as the nation's servicers and lenders - including investors - all lined up with a renewed and direct focus on doing what's necessary to keep properties out of foreclosure, there's never been more help for homeowners in trouble than there is today.  Consider this:  according to one national study, lenders lose an average of 19% on short sales compared to an average of more than 40% on foreclosures.  That's powerful.

2.  It's Important to Know What You Don't Know
As a consumer in the throws of financial crisis, it's very difficult to be objective and to see every side of the equation in front of you.  Working with a real estate professional who specializes in short sales allows you greater bargaining power, clearer insight and the advantage of having an experienced professional negotiate on your behalf.  Much as you would hire an attorney to represent you in a court of law, having an experienced professional negotiate on your behalf.  Much as you would hire an attorney to represent you in a court of law, having an experienced agent in your corner is not only a comfort, but your best recourse for ensuring your family's interests are protected.

3.  Not just ANY agent
Without the proper training, systems and solutions in place, you could be at risk of additional financial burdens.  Lenders are increasingly specific on what it takes to push through the many options that are available to you.  Short sales, for example, have just a 20% closing ratio on average when submitted by an untrained agent, whereas that closing ratio can jump to 80-90% with the proper system and training.

4.  Know the Difference Between a Short Sale and Foreclosure
The primary difference in the two lies in the effects on your long-term consumer credit.  Let's take a look at some of the differences:
SHORT SALES:  Negotiated settlement, seller's credit is bruised - not ruined, no attorney fees, peace of mind, you can buy again in as little as two years, all liens are negotiated.
FORECLOSURE:  Court settlement, seller's credit damaged long term, usually large attorney fees, very little peace of mind, buy again in 10 years, all liens are exhausted.

Helping families in distress is what I do best.  I believe that no one should have to weigh these financial options alone and know that having an advocate on your side can not only help you best resolve your situation, but allow you to more quickly find peace of mind as well.

I'm here if you need me with answers to all the many questions you might have.  I invite you to also share this valuable information with anyone you know who is facing a mortgage crisis.  Everyone deserves a resource they can trust.

Felicia Jones, Realtor
Keller Williams Realty, BRE# 01977033
424.278.9426
homesbyfelicia@kwrealty.com
www.feliciajones1.kw.com

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