Short sales and foreclosures have become the face of real estate. Property buyers are seeking deals and distressed homeowners are either walking away from their homes or trying to emerge from their situation as unscathed as possible.
The best way to avoid foreclosure is to pursue alternatives like a short sale or a loan modification. Don’t run from the obligation, but instead confront it head on with an experienced Realtor and your lender to determine the best approach.
Besides the obvious impact to the homeowner of losing the home itself, a post-foreclosure credit score will take a hit of at least 200 points and the homeowner’s credit history will reflect the foreclosure for seven years.
But the ripple effects continue. Both the neighborhood of the foreclosed home and the surrounding community are adversely impacted. Along with the equity, the value of those area homes declines and the likelihood of theft and vandalism increases.
Obviously there is lot at stake. A targeted approach with your lender, a licensed Realtor, and possibly a legal resource will potentially help your situation, maintain the integrity of your neighborhood, and eventually restore some balance to this market.