There are solutions. We can help.
In today’s market, distressed properties are an unfortunate realty reality. Due to falling home prices and worldwide economic struggles, many good, responsible people are finding themselves owing more on their mortgages than their home is worth. Too many are finding their homes falling into foreclosure, crushed under the weight of a crippling mortgage. Fortunately, Chris Weitzel & Associates can help. And while the process isn’t always easy, there ARE ways to avoid foreclosure. 

There are 9 Basic Ways to Avoid Foreclosure
1. Reinstatement: Bring the loan current
2. Forbearance: Temporary repayment plan
3. Refinance: New loan with reduction in monthly payments
4. Loan Modification: Modify original loan terms
5. Sell The Property: Use equity to pay off or pay difference
6. Rent The Property: Must make loan current
7. Short Sale: Negotiate with bank to accept sale under loan amount
8. Deed In Lieu of Foreclosure: “Friendly foreclosure”
9. Bankruptcy: Will stall foreclosure but not prevent it 

What Choice is Best for Me?
While every homeowner needs to pick a path that is right for his/her situation, today’s economy has made many of the choices above hard to accomplish. Most homeowners do not have enough cash to pay off their debt and with plummeting home prices it can be difficult for one to sell for the amount of their balance. That’s why short sales have begun to play such a big role in our market. As stated above In a short sale, the homeowner arranges with their mortgage lender to sell at a price that's less than the amount they owe on the property. As part of this arrangement, the lender typically agrees to forgive the rest of the loan and as a result, the seller doesn't have to go through a foreclosure, the buyer picks up a property at a discount, and the lender avoids taking on the burden of unloading the property. It's a win/win situation for everyone. The following table addresses the consequences of a foreclosure versus a successful short sale. If you have any questions, please do not hesitate to contact us. 

Foreclosure vs. Short Sale 

Issue	Foreclosure	Successful Short Sale
Current Employment	Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Future Employment	Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Security Clearances	Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.	A short sale on its own does not challenge most security clearances.
Deficiency Judgment	In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.	In some successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner.
Deficiency Judgment (amount)	In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.	In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.
Future Fannie Mae Loan – Primary Residence	A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.	A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.
Future Fannie Mae Loan – Non Primary	An investor who allows a property to go to foreclosures is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.	An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.
Future Loan with any Mortgage Company	On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” This will affect future rates.	There is no similar declaration or question regarding a short sale.
Credit Score	Score may be lowered anywhere from 250 to over 300 points and typically will affect score for over 3 years.	Only late payments on a mortgage will show and after a short sale, mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A short sale effect can be as brief as 12 to 18 months.
Credit History	Foreclosure will remain as a public record on a person’s credit history for 10 years or more.	Short sale is not reported on a credit history. There is no specific reporting item for “short sale”. The loan is typically reported “paid in full, settled.”

Short Sale Myths that are Landing Homeowners in Foreclosure
Because short sales have not become common until recently, there are many myths floating around that could potentially hurt a homeowner when deciding how they should sell their home. Below are six very common misconceptions that you should become aware of when considering a short sale.  

Chris Weitzel - Your Local Certified Distressed Property Expert
While experiencing financial distress is difficult for everyone, the process of finding a qualified professional to help, shouldn’t be. As your local Certified Distressed Property Expert (CDPE), Chris Weitzel & Associates have the knowledge and experience needed to help find the best solution for your situation. We are professionals ready and willing to address your unique needs. Having been thoroughly trained in the area of short sales, we have what it takes to save your family from foreclosure. For more information on how we can help, give us a call at (360)312-5151 or fill out the form below regarding your personal situation. 

Click here for more information on Chris Weitzel’s “Certified Distressed Property Expert” (CDPE) designation and how it could help YOU while trying to avoid foreclosure. 

Request Form
Please fill out the form below regarding your situation immediately if you are at risk of going into foreclosure. There are solutions and we can help.