So now that we know the differences between foreclosure and short sale, who is allowed to do them? Typically people think that the only way a short sale happens is when the payments are behind. That is not necessarily always true.

A foreclosure will happen to any person who does not make payments and or has not been able to sell the home by a foreclosure date. A short sale can stop a foreclosure and generally is a better solution than bankruptcy or foreclosure.

The people who are eligible for short sale are folks who are in some sort of distress. Distress in the eyes of a bank can mean loss of job, divorce, death, medical hardship, dramatic income changes within the household, huge payment changes and a host of other issues. A person does not necessarily have to be behind in payments. However if you want to sell because you don’t like your home anymore, that is not valid.

Another key point to distress is your financials. If you have liquid cash, you will not qualify for short sale. However if your financials show more going out than in and you have no savings, you could qualify. One key point is retirement funds in IRA’s and SEP’s are off limits, so they stay safe.

Obviously it’s better on your credit to keep payments going, but if you find yourself sinking it’s better to consult a professional CDPE realtor before you drown. Call us at The Brian Maecker Team and we’ll show you all your alternatives.

Thanks,
Brian
www.brianstopsforeclosure.com