Avoiding Foreclosure in Florida
Foreclosure is not the answer for the homeowners in crisis, which seems to be increasing throughout Polk County, Florida.
I’ve heard horror stories of homeowners packing up during the middle of the night, and homeowners that have actually mailed their keys back to the lender and just walk away from their homes. There is another alternative, one that you should seriously consider as soon as you find yourself in a distressed situation. Doing a short sale on your home is so much more beneficial to your credit and much easier and quicker to repair than having a foreclosure on your record.
A foreclosure stays on your credit report for 10 years, and if you buy another home in the future, you have to disclose on the credit application if you have EVER had a foreclosure, there is no time limit on that. With a short sale, you can begin building your credit immediately, and can usually have it completely repaired in a 2 year timeframe. A foreclosure can affect your credit score by 300 points…for each loan, so if you have a first and a second mortgage, or line of credit, it could be as much as 600 points. With a short sale, your late payments will show on your credit report, but typically it only affects your credit score by about 50 points. So, you can see that it is much easier to repair your credit with a short sale vs. a foreclosure.
A Realtor that is trained and has experience in short sales will be your new best friend! Insist on a Realtor that is a Certified Distressed Property Expert (CDPE). Short sales listed with a CDPE agent have an 85% success rate of selling and closing, which avoids foreclosure for the homeowner, while the national average of short sales closing with Realtors is 10 to 12%. That’s because there are many, many Realtors taking listings that are short sales and they have no idea what they are doing. This can be devastating for the homeowner.
Alex Charfen founder of the Distressed Property Institute believes that homeowners surrounded by a strong CDPE real estate agent team including legal and financial referrals have the greatest chance of avoiding foreclosure and at minimal financial investment to the homeowner.
If you are behind on your mortgage payments, feel you may be facing foreclosure or simply have questions regarding the short sale or foreclosure process, please contact our office at 863-577-2600, and we will schedule a confidential phone interview with one of our CDPE agents. We are here and ready to help. Time is of the essence, so please call today if you need help, or to discuss your options to avoid foreclosure.