Short Sale or Foreclosure, What Should “I” Do?

TV, newspaper, internet wherever you turn you are hearing about this topic everywhere.  Those facing a short sale or foreclosure know it can be very stressful and often wonder where to turn.  I am here to tell you that “YES” it can be stressful, but once you have spoken with a qualified person that can give you direction, answer your questions and help you to make those first steps, this stressful feeling will subside and you will wonder why you waited so long to ask the question.  What most people don’t know right now, if you were to start asking around, you would be surprised at how many people are in the same situation you are in.  Why are we so afraid to talk with each other about our difficulties…remember when the teacher always said to us, the only stupid question is the one that was not asked?  Shouldn’t that apply in this situation also?

The worst thing you could have to tell your spouse or partner is that you may be on the verge of loosing your home.  Now what, how long will the process take, where do we go from here & most impotantly…where will we live & how long with this affect our credit scores.  These are more than just scary thought.  Depending on the action you have to take; short sale vs. foreclosure both will impact your credit scores but in two very different ways.

Short Sale: May stay on your record for 3-4 years.  How it affects your credit score is based on each situation individually as each of our credit scores are different to begin with.  After the appropriate number of years, you may see this come off your credit report.  If you have a second mortgage, this lender has up to 7 years to come after you for the deficient amount owed on that loan even once the home is sold.

Foreclosure: This will stay on your credit report FOREVER! It may affect the terms of any loan or credit card you try to obtain in the future. 

Neither of these procedures should be taken lightly, however, working with a qualified real estate agent will help guide you through the process and be able to direct you to the correct persons that you may need to speak with in order to make the correct decision for you.  When speaking with a Real Estate agent about how you should proceed, it is important to know that this person can not ethically give you any legal or financial advise on the decision you might need to make.  It is always in your best interest to speak with the appropriate persons for direction in these matters.  Your Real Estate agent should also not pressure you to make any impulse decisions on what you want to do.  Since this decision is going to affect you for many years if not a lifetime, take the time to make the decisions that feel best for you, your spouse and most definitely your family.

The other thing to remember is each situation is different and how the bank works with your agent will be different in each case.  So if you see an agent promoting themselves as an experienced or expert in either of these situations, remember that these designations are self-proclaimed and there is NO government or agency that gives these titles to an agent.

THE SPIRITS TO MOVE are here to assist you in all your real estate needs & questions.  Leave us a question if you have one and we will get back with a private response to you.  We are here to help move you in a professional & confidential manner.

Scams, Scams, Scams Everywhere!

As we all know times are tough and many are in dire straights with their real estate situation as well.  Most homes now are over valued, which means the current mortgage is more than the actual value of the home.  I hope that many people like myself try to find the good in each and every person that I encounter.  However, there are people out there that look to take advantage of people to assist in their own getting ahead. Sad part is they don’t care if they prey on elders, handicapped or just the everyday person trying to make a living.

Real estate has been hit hard over the past several years with many different types of scams that have put the current market in a very precarious situation.  Now many are looking for help to keep their homes, sell their homes and protect some of their interest or just know what may happen if they walk away. 

The sad  part about the whole situation of what is going on now, is it is hard to catch the people who are preying on persons that truly are looking for help to resolve their situation.  We have all heard it before, but I am going to say it again before I get into the top 3 scams that are going on right now in the real estate market:


Here are the top three scams that are happening now in the real estate market for those looking for help.

1.)  PHANTOM HELP:  Out of the blue you get a postcard, flyer or call from someone stating they can help you save your home.  Generally, these types of advertisements are scams.  Be VERY careful if you plan to contact on of these solicitations about the information and personal information you give them.  More than likely they are not working with anyone connected with your mortgage or your personal situation.

2.) BAIL-OUT/RENT-TO-BUY: Should someone approach you to buy your home at a discounted amount, have you rent from them for a certain amount of time, then you get to buy the home back for the purchase price….RUN!!!!!!  This is the BIGGEST scam out there.  These people will show up with a document ready for you to sign that has these details drafted out, but in reality, what the document states is you are SIGNING THE DEED TO YOUR HOME OVER to this person/company.  You will soon receive a certified letter or some sort of contacting notifying you that you have so many days to move out of your home.

3.) Bait-N-Switch:  Again, this looks a lot like the bail-out/rent-to-own, but this time they will show up with documents & just fill in the information in front of you.  This person will be dressed VERY well, mainly a male and be a very fast talker.  They will tell you, you have to make the decision right then and there and pressure you to sing the document.  You will be signing the deed to your home over to whomever this person/company is.

Where can you turn for help you can trust?  HUD is always a  great option; they provide a service that allows you to bring in any documents you have received and someone will review them and give you suggestions as to how to progress or if it may not be in your best interest.  Also, you have the right at any time to contact a lawyer of your choice to review the documents you have.  There maybe a fee for this service so check with the firm you want to work with.  You can also try to work with your local bank that you have a personal relationship with. They maybe able to suggest

THE SPIRITS TO MOVE are here to help and provide you with information that is helpful & trustworthy! Be safe and know who you are talking with at all times about your personal & financial information.