A common issue with people that are dealing with the potential of a foreclosure is that they never seek help from a 3rd party and know what their options are.  One option to avoid foreclosure is a short sale.  What is a short sale you ask?  A short sale, is when the owner of a property negotiates a sell and the lender agrees to take less money of the payoff than what is owed on the note, hence the term, "Short Sale."

Many people don't realize the effects a foreclosure can have on their life and credit versus the effects of a short sale.  Here's a brief explanation of the differences.

ISSUE - Security Clearances - A FORECLOSURE is the most challenging issue against a security clearance (outside a felony or misdemeanor conviction).  If you hold a position with  security clearance (CIA, military, security, police officer) in almost all cases, clearance will be revoked and the position terminated.  A SHORT SALE does not challenge most security clearance.

ISSUE -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 grounds for immediate reassignment or termination.  A short sale is not reported on a credit report and is therefore not a challenge to employment.

ISSUE - 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 case will challenge employment.  A SHORT SALE is not reported on a credit report and is therefore not a challenge to employment.

ISSUE -DEFICIENCY JUDGEMENT- In 100% of FORECLOSURES (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgement.  In some successful SHORT SALES, it is possible to convince the lender to give up the right to pursue a deficiency judgement against the homeowner.

As you can see, there are a lot of good reasons to pursue a short sale if you have a legitimate hardship that has put you in the financial situation of not being able to pay your mortgage.  Such hardships include loss of job or income, death, divorce, illness.  As a CDPE, Certified Distressed Property Expert, I have the training and expertise to help guide people through this uncertain process.  If you need help or advice, just give me a call.  Foreclosure does not have to be the answer!