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Facing Foreclosure?
A Short Sale May Be A Better Option.

Download my FREE eBook to learn how a short sale can help.

facing foreclosure learn how a short sale can help ebook

Learn How

This eBook will provide you with information about how to avoid foreclosure in Virginia, explain the effects it can have on you and your family, and offer other options that may be available to you.

To Stop The Foreclosure Process

The Difference In A Short Sale vs Foreclosure

A Foreclosure Can Affect You

To Get Started With The Short Sale Process

A Short Sale Can Help

Frequently Asked Questions

Looking For Foreclosure Help In Virginia?

 I can help with foreclosure prevention and foreclosure services

Feeling like there is no other option but foreclosure can be an overwhelming experience. Know that you are not alone. Thousands of homeowners in the United States are facing the same challenges as you every single day. Now more than ever before there are solutions.

You need help, guidance, and someone who understands the difficult choices you are facing about your home, your family, and your life. Quite often a homeowner facing foreclosure thinks they have to go through the process alone, forced into a daunting situation caused by unforeseen circumstances beyond their control.

Key Reasons to Avoid Foreclosure

Minimizing damage to the credit.
Foreclosure and bankruptcy are public records that cause fatal damage to credit scores (foreclosure up to 7 years and bankruptcy up to 10 years).

Maintaining control and integrity.
Eviction is an unpleasant experience where the borrower is forced to lose the house against his/her will.

Ways Foreclosure Can Affect You

Credit History
A foreclosure will remain as a public record on a person's credit for 10 years or more.

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 ground for immediate reassignment or termination.

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 cases will challenge employment.

This eBook will provide you with information about how to avoid a foreclosure, explain the effects it can have on you and your family, and offer other options that may be available to you. This includes a short sale, and I can help you determine if you qualify.

Download Your Copy Today!

facing foreclosure learn how a short sale can help ebook

Options When in Foreclosure

There are options you can take when facing foreclosure.  There is no magic solution that should be used in every situation, so it is important to understand the different options.

Option 1 – Reinstatement

Reinstatement means that the loan is restored and put back in place.  In order to accomplish this, the homeowner has to pay all monthly payments missed while in foreclosure in full plus all the late fees and legal fees.

Option 2 – Pay Off / Refinance

The loan can always be paid in full at any time up to the foreclosure sale.  In some states, the homeowner can even reclaim the property several weeks after foreclosure.  Refinancing is typically difficult since the homeowner's credit is damaged from the foreclosure process.

Option 3 – Deed in Lieu

This means that the homeowner gives the deed back to the bank.  It is reported differently than a foreclosure and is less severe.  In certain situations, the bank will even give the homeowner “cash for keys”

Option 4 – Credit Counseling

Credit counseling is typically for unsecured debt but in some instances, the reason the homeowner is in foreclosure is because of high credit card bills and/or medical bills.

Option 5 – Forbearance

Forbearance is an agreement between the bank and the homeowner to postpone the foreclosure as long as the homeowner takes certain actions.  The amount owed is typically put on the back of the loan. 

Option 6 – Partial Claims

Partial claims are only available to homeowners with an FHA loan and that meet the HUD (Department of Housing and Urban Development) guidelines.   The homeowners are given an interest-free loan by HUD and it is paid off when the mortgage is paid off or the property is sold.  The loan is reinstated when this option is chosen and this option can be combined with other options like forbearance and Chapter 13 bankruptcy.

Option 7 – Loan Modification

A loan modification is simply amending the mortgage.  The bank typically extends the loan from 30 to 40 years.  It is not a very good option for people that are extremely underwater unless the bank agrees to reduce the principal. 

Option 8 – Chapter 13 & 11 Bankruptcy

Chapter 13 and Chapter 11 are reorganizations of debt. Chapter 13 is for individuals and Chapter 11 is for businesses.  The most desirable part of Chapter 13 bankruptcy is that it will stop a foreclosure proceeding.  The homeowner must have a viable income to make this option work. 

Option 9 – Chapter 7 Bankruptcy

Chapter 7 is when the debts are discharged completely when a person is unable to make payments.  The court will take non-exempt assets from a person to pay off as many debts as possible.

Option 10 – Short Sale

A short sale is when the bank agrees to take less than what is owed and the house is sold at a discounted amount.  It is a great option for someone that wants to sell the house but cannot due to being “underwater” and owe more than what the house is worth.

In Conclusion

Taking action and choosing an option early on in the foreclosure is the smartest move.  This gives the homeowner time to explore all the options available to them and make the right choice.

Contact Me

FAQs - Short Sales

1. What is a Short Sale?

A short sale is a transaction that allows the sale of a property for an amount less than the amount owed to the bank. The bank in return accepts the proceeds as settlement of the debt. 

How long does it take to close a Short Sale?

It depends on the property location, the lender, and other factors, but in general, a short sale can take anywhere between 3-6 months.

What happens to the seller’s credit rating when they short sell their property?

Typically the loan will show up as "paid" on their credit report; however, there will be a notation that says "settled for less than originally owed" or something along these lines. It is more favorable for a homeowner to short sell than to have a foreclosure or bankruptcy on their credit report. A short sale will affect the credit of the seller for 1-2 years whereas a foreclosure or bankruptcy will affect the seller’s credit for 7-10 years.

What documents does a seller include in a Short Sale package?

Documents depend on the lender. Each lender has different requirements. It is typical to require an Authorization to Discuss for the Agents, a hardship letter, purchase and sales contract, settlement statement (HUD 1), pay stubs, bank statements, and personal financial sheet (monthly budget), amongst other things.

Are there differences if the property is Vacant or Occupied?

A primary residence may receive a Relocation Allowance, a vacant home is not eligible for the Relocation Allowance.

How late in the pre-foreclosure process can you start a short sale?

Most lenders require to have a COMPLETE package to them at least 30-45 days prior to a scheduled foreclosure date for them to consider the short sale option.

Will the borrower have to pay taxes for a Short Sale?

The borrower may pay extra income tax if the bank sends a 1099 for the deficiency. If the subject property is the borrower's Primary Residence then the taxes on the 1099 will be calculated based upon the Mortgage Forgiveness Debt Relief Act of 2007 HR3648.

How Does the lender determine the property value?

It is a lot like an Appraisal only not as extensive and is performed by a Real Estate Agent. An Appraisal is performed by a licensed Appraiser. Some banks just order a BPO (BPO stands for Broker’s Price Opinion). Others will just order an Appraisal. Sometimes both are ordered. It varies depending on your lender or the type of mortgage you have.

Can an owner profit from a Short Sale?

The seller cannot profit (monetarily) from a pre-foreclosure short sale.

How do bankruptcies affect the possibility of doing a short sale?

Most mortgagees won't consider a short sale if the homeowner is in bankruptcy...why? Because negotiating a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.

Contact Me

Need Short Sale Help? Looking For A Short Sale Realtor? Thinking Of A Distress Sale?

Download my FREE eBook to see how a short sale can help.


A homeowner who loses a home to foreclosure

Credit score drops 250 to over 300 points
Affect the credit score for over 3 years
On report 10 years or more

After a successful short sale

Credit score drops as little as 50 points
Affects the credit score as brief as 12-18 months
Doesn't show on report

Short Sale My Home - Lets Get Started!

facing foreclosure learn how a short sale can help ebook

What My Clients Say

We used Mr. Tracy Brown's company from renovations to closing. Always available and kept us well briefed of all progress of selling our house.

M. Ripley

M. Ripley


My wife and I are truly satisfied with the excellent real estate services provided by Tracy Brown. Tracy explained the entire process to us to include what to expect in selling our home. He kept us informed of the fluctuations in the housing market and he gave updated assessments of our status at least weekly.

S. Taylor

S. Taylor


Everything with Tracy seemed effortless and easy. From the pre-listing inspection, spot on listing price estimate, arranging showings, and post contract efforts. Communication was also great and timely. We highly recommend Tracy and would use his services again, and are recommending him to our friends.

W. Henderson

W. Henderson


Tracy Brown was much more than my agent, he was my real estate advocate. I had a house that I thought was going to be very difficult to sell but Tracy made it look easy. From attracting prospective buyers, to fighting for the best outcome for me as the seller, he always had my back. His work ethic and tenacity made for a painless and speedy sale for me and my family. Thank you Tracy!

B. Eck

B. Eck


Thank you Tracy I appreciate the hard work and advice which sold my house. You made the process easy even with me being out of state. Highly recommended!

T. Palmer

T. Palmer


Tracy Brown was extremely professional and dedicated in getting our house sold. His professionalism was important to this process, however his personable attitude during this arduous course was essential in making my family and I feel like he truly cared about our well being. He honored our timeline by meeting at our house during the initial appointment, and he was always quick to reply to any texts, emails, or phone calls that he received from me. Anyone looking to sell their house would be blessed to have Tracy in their corner. My family and I couldn’t recommend him any more highly!

J. Eddy

J. Eddy


I would like to thank you for the wonderful job you and your associates did in assisting me in the short sale of my family home. You were there to answer my questions and made the process go smoothly. I would highly recommend your services to my family and friends.

H. Hudson

H. Hudson


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