Top 10 Reasons to Avoid Foreclosure continued...

Reason #6-10.

Reason #6 Current Employment
Employers have the right and will actively check the credit regularly of all employees who are in sensitive positions. A foreclosure can be grounds for immediately reassignment or termination, whereas a short sale is not reported on a credit report and is therefore is not a challenge to employment.

Reason #7 Future Employment
Increasingly more and more employees are requiring credit checks on 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 will not challenge employment.

Reason #8 Deficiency Judgment
In 100% of foreclosures (except in those states where there is no deficiency) the bank has a right to pursue a deficiency judgment. In some short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner. 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 lower deficiency.

Reason #9 Control
In a foreclosure situation homeowners are often stressed because they don't know when or how things will happen. In a short sale with a qualified short sale agent assisting the process, much more control can be given in regards to timing and the sale process. With this type of clarity, it's easier to make an informed decision versus waiting to see what the bank's next move will be.

Reason #10 Peace of Mind
How can you put a price on "Peace of Mind"? The satisfaction knowing one has done everything possible to satisfy one's debt is priceless and long lasting. This may be the most important reason of all.

Homeowners who are delinquent in payments and struggling due to deficient equity are often at their wits end and desperate for help. Local lenders are overwhelmed, and while there are many credit, loan and law companies out there claiming that they can help - for a fee, consumers are quite understandably not sure where to turn.


If you'd like to know more about how to buy a short-sale or how to avoid foreclosure, Lee Ann Canaday a Certified Distressed Property Expert (CDPE) and Adam Alcaraz a Realtor/Counselor with over 13 years experience offer a free ongoing information session on "How to Buy Short Sales and How to Avoid Foreclosure". The next seminar is scheduled for Tuesday October 27h, 6:30 -8:00 p.m. at UCI University Club, 801 E. Peltason, Irvine.