Posted On 23 Aug 2020

This post is going to be a little different. I’m going to make it personal and pull at your heart strings a little. Hopefully by the end of this you realize that foreclosures happen to average, everyday, hardworking people. I also want you to understand that there is help available. Even if you do happen to lose your home due to foreclosure, its not the end of the world, you can recover.

This is a story of a young military couple. This couple needed to reduce their mortgage so they made the decision to refinance their home.  They had found a solution to their problem until they received orders to leave the area. These orders added a new stressor to the family’s lives. Since they had recently refinanced they would have to bring $35,000 to the table when they sold the house. This was a consequence of them pulling all of the equity out of their home. The couple had already made plans for the money they received from the refinance. They planned to use the money to keep their family afloat you know food, water, the everyday essentials.  This left the family with 2 options:

• Option 1, let the house go into foreclosure and walk away
• Option 2, list the house as a rental

Now, you’re probably sitting there thinking option 2 is a no brainer. I hate to be the bearer of bad news but if the family were to rent out their home they would still have to contribute about  $300/month  to cover all expenses. Now that option 2 is out of the picture there is only one option remaining, foreclosure.

Many people fear the word foreclosure, and rightfully so. The family knew foreclosure would destroy their credit so just like that option 1 was taken off the table. So, what did they do? The family reached out to a realtor, a short sale realtor. That realtor added a third option to the mix, short sale. A short sale allowed the family to sell their home for $30,000 less. It also gave them the money they needed to relocate while only damaging their credit for 2 years max. After 2 years the family would be able to purchase another home. So yea, a short sale didn’t completely remedy the problem facing the young couple but it only had 2 years of lasting effects, compared to the 7 years that come with foreclosure.

We all love a happy ending so here it is. Since then, the family has moved, re-established themselves in a new state and repaired their credit score. The short sale realtor received a family picture to say thanking you for walking their family through the short sale process. The short sale realtor gave the family more than just a short sale help. The realtor gave them peace of mind by finding a solution to help secure a bright future for them and their children.

This is the story of one family. If I wanted to I could post nothing but stories about families like this one, trying to avoid foreclosure, and I would never run out of material. Many Americans today find themselves in similar situations, needing foreclosure help. If you or someone you know is in a similar situation don’t lost hope, there are options. You just have to do the research to find people who are equipped to help you.

For more information on the difference between a short sale and foreclosure, download a free eBook here.

Posted by K. Brown