Why You Should Avoid Foreclosure 
When it comes to losing your Idaho home to foreclosure, there is no quick and easy fix. Financial troubles come in all sizes and it can be a very emotionally draining process. The most important thing to remember is to "stay sharp!"
Don't let your emotions take over the logical thinking process that can help you and your family. Don't be afraid to ask for help.
The worst thing a home owner can do during this distressed time, is to stick their head in the sand and think it will all be OK.
There are options to avoiding Idaho Foreclosures. You may be able to get a loan modification, however I see very few of them actually work. Beware of losing precious time on a modification process that could lead to a foreclosure at the last minute. The best alternative to a foreclosure is an Idaho Short Sale!
What is a Short Sale?
Let's take a look at the difference between an Idaho foreclosure and an Idaho short sale:
Foreclosure:
- Party can not obtain a new Fannie Mae backed mortgage for 5-7 years.
- Credit Report will show "FORECLOSED."
- Foreclosure lowers credit score by more than 300 points.
- Any future home loan application will ask, "Have you ever lost a home to foreclosure..."
Short Sale:
- Party can obtain a new Fannie Mae backed mortgage within 2-3 years.
- Credit Report will show "Settled for less," or "Paid as Agreed," or "Paid in Full."
- A Short sale will only lower your credit score due to the late payments, maybe as high as 100 points.
- There is no current disclosure of a past short sale.
Bottom Line: A foreclosure is the worst thing that you can do for your credit standing and your ability to buy a home in the future. A short sale is no fun and it can take some work along with the help of your Idaho real estate agent, but it will be less painful in the long run.
So, can the mortgage company come back after you for the deficiency? The answer is yes, within 5 years, however, they can also come after for the deficiency on a foreclosure. The best approach is to have a qualified short sale experienced agent that will negotiate terms to keep the deficiency either low or not at all.
There are methods and programs to keep a home owner from having to pay deficiencies after a short sale. If you feel the need to seek legal counsel on this subject, please do so, but get second opinions.
As a short sale listing agent and Certified Short Sale and Foreclosure Resource (SFR), I help sellers look for the proper verbiage within their short sale documents and /or a zero promissory note for the deficiency on their mortgage.
Idaho Short Sales Video
For a FREE and confidential counseling appointment about your foreclosure or short sale situation, please call my cell phone directly, at (208) 880-5039.
