There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a “short sale. When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. The advantages of a short sale depending on the amount, may still be a better choice than a foreclosure. Foreclosures, and short sales, both affect credit scores and the ability to purchase a home, but a short sale will cause less damage in both areas.  Having a short sale on your record may only slow the process about 18 months before seeing good interest rate offers. Keep in mind that  a decent credit score is a big advantage to avoiding a foreclosure.

How do you plan to get your house back on track? When the dream of owning that perfect house, full of memories and love have worn away, and you’re faced with the ugly reality of foreclosure, what’s your next step? Unfortunately, a large percentage of home sales today between 45% and 50% are in the distressed category. It is important to know, foreclosure is to shut out, to bar, to extinguish a mortgagor’s right of redeeming a mortgaged estate. It is a termination of all rights of the homeowner covered by a mortgage. Foreclosure is a process in which the estate becomes the absolute property of the lending institution. To better understand the steps involved, Visit http://www.michigan.gov/documents/mshda/Foreclosure_Timeline2_288362_7.pdf

Foreclosure can be overwhelming and at times scary, to lessen the stress levels, home owners should educate themselves on all resources and options available. The website: http://www.michigan.gov/mshda/0,1607,7-141-45866_47905-177797–,00.html has helpful content to get started with, as well as http://www.michigan.gov/mshda/0,1607,7-141-45866-177818–,00.html for information on the most common questions regarding foreclosure.

By all means the first plan is to keep the home, but if sale can not be avoided, as the home owner, to sell as quickly and smoothly as possible is your best bet. Realtors should be in tune with the same goals orientated in helping homeowners with their foreclosure fiasco. At Realtor.org/foreclosure you’ll find a collection of educational opportunities and the best practices.